Poor control of the power grid can lead to a total system collapse, causing significant economic losses and possible damage to security and social peace. Therefore, improving power system stability, particularly transient stability, has become one of the major research topics. This paper proposes a developed modeling approach that provides the optimal stabilizer parameters of the control devices, aiming at improving the electrical network stability by minimizing the angular speed deviation in the presence of a severe disturbance event using a novel hybrid algorithm called Water Cycle-Moth Flame Optimization (WCMFO). The main advantages of the proposed method are the speed of response and its efficient exploration and exploitation ability to attain the best solution quality. This is achieved by imposing a thermodynamic incident (an abrupt change in mechanical torque) on the well-known test model (SMIB), Single Machine Infinite Bus. To test the effectiveness of the proposed method, Power System Stabilizer (PSS), Proportional-Integral-Derivative (PID-based PSS), and Fractional Order-PID (FOPID-based PSS) are implemented to control and ensure the system’s ability to return to a stable state in the presence of this fault. The achieved experimental outcomes have proven the superiority, and efficiency of the developed approach (WCMFO) in terms of damping the oscillations and reducing the overshot, with an improvement of 44% over the Water Cycle Algorithm (WCA), Moth-Flame Optimization (MFO), and Artificial Ecosystem Optimization (AEO). It is envisaged that the proposed method could be very useful in the design of a practical high-performance power system stabilizer.