A new methodology for the implementation of a power system model for damping low-frequency oscillations in field programmable gate array (FPGA)-based real-time simulator is proposed. The continuous form of the model is converted to discrete-time domain model, and then reduced to block diagrams involving the delay operators and gains for the implementation in the FPGA. The hardware implementation of a power system stabilizer (PSS) to control the system is also introduced using FPGA. The real-time implementation of the proposed approach in an FPGA is described. To verify the effectiveness of the proposed FPGA-based simulator, a single machine infinite bus system (SMIB) is tested with the stabilizer under different operating conditions. Results show the capability of implementing the power system with the stabilizer in an FPGA. Additionally, very short time and constant computation time per simulation time-step are established.