Due to uncertain photovoltaic (PV) power generation, analyzing the voltage stability of transmission networks with a large PV plant is challenging. The stability of PV output power is a critical factor in establishing PV penetration levels in active transmission networks when assessing loading capabilities. Therefore, this article contributes to enhancing the understanding of how a static synchronous compensator (STATCOM) could be used as part of the power system network. STATCOMs are often used to improve the static and transient voltage, maintain transmission limits, and reduce low-frequency disturbances. With the help of a STATCOM unit, a proper investigation and analysis of dynamic voltage stability in a transmission system are presented. The validity of the study is evaluated by the Saudi Arabia grid code (SAGC). The system being tested is comprised of a 300 MW PV plant in Sakaka, Saudi Arabia, integrated into a 17-bus transmission power network and a STATCOM, which is employed at one of the buses. PSAT software is used to evaluate a number of case studies to determine the transient voltage stability with and without the STATCOM and the PV plant. The simulation findings demonstrate how STATCOM functions to improve the quality of the power system in accordance with the SAGC. In addition, the analysis of voltage stability demonstrates that the power network’s resilience to short circuits at the PV system’s grid connection point significantly impacts the voltage’s dynamic behavior.