Modeling and simulation of nonlinear systems under chaotic behavior is presented. Nonlinear systems and their relation to chaos as a result of nonlinear interaction of different elements in the system are presented. Application of chaotic theory for power systems is discussed through simulation results. Simulation of some mathematical equations, e.g. Vander Pol's equation, Lorenz's equation, Duffing's equation and double scroll equations are presented. Theoretical aspects of dynamical systems, the existence of chaos in power system and their dependency on system parameters and initial conditions using computer simulations are discussed. From the results one can easily understand the strange attractor and transient stages to voltage collapse, angle instability or voltage collapse and angle divergence simultaneously. Important simulation results of chaos for a model three bus system are presented and discussed. © 2010 Elsevier B.V. All rights reserved.