A strategy is presented for the self-tuning of a voltage source converter (VSC) based Flexible AC Transmission Systems (FACTS) according to the prevailing system condition. L-index, which is a power system voltage stability status indicator, and its associated parameters are used to automatically regulate the modulation signal of the VSC. This will lead to a proportionate adjusting of the magnitude of the current injected into, or absorbed from, the interconnected load bus by the FACTS device. This regulating scheme will enhance seamless and optimal reactive power compensation by utilizing the dynamic operational nature of present day distressed power system networks. Results obtained using this method when applied to selected load buses of the IEEE 14 bus system under varying practical scenarios showed its capability to appropriately control FACTS devices operation to accommodate system changing conditions. It is hoped that the outcome of this work will provide efficient tools for the determination of power system status, ensure optimal utilization of the dynamic reactive power compensation devices and reduce system outages.