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In this paper, an uncertainty aware hybrid of model predictive control (MPC)–fuzzy logic control (FLC) framework is proposed for FACTS based switched capacitor compensation scheme to improve the smart grid voltage stability and reactive power management applications. Besides, the rising penetration of renewable energy sources, stochastic load fluctuations and grid disturbances pose considerable uncertainties which make it unfeasible for the traditional compensation and control approaches. The solution proposed here is to combine the predictive optimization ability of MPC and adaptive rule-based intelligence of fuzzy logic, which makes the system robust under various uncertainties at run-time. The implemented system consists FACTS-based switched capacitor bank as main reactive power compensation. An MPC layer is intended to forecast future grid states over a finite horizon and optimize control actions so as to minimize a multi-objective cost function containing voltage deviation, reactive power imbalance, switching losses and system instability. Additionally, the fuzzy logic controller continuously updates control parameters and switching decisions as functions of real-time grid conditions like voltage error, the rate of change in voltage regulation action and load variability. We accomplish this by incorporating uncertainty-aware modelling of the problem, through probabilistic estimation methods that allows the controller to account for renewable intermittency and measurement noise or parameter variations. Simulation studies are performed on a modified IEEE 14-bus smart grid system under different operating scenarios such as load changes, fluctuation of renewable generation, and fault disturbances. The results show that the proposed hybrid MPC–FLC framework significantly improves upon classical approaches, such as rule-based control and single use of MPC. In particular, the method delivers up to 32% better voltage profile regulation, and 28% lower reactive power mismatch and 35% less voltage deviation compared baseline methods. The system was also found to have an approximately 40% reduction in settling time with better dynamic response and stability margins in large disturbances. More importantly, the optimal capacitor switching sequences generated through this control strategy not only decrease switching stress effectively but also increases system efficiency. By taking uncertainty into account, the design enables consistent tolerance of stochastic conditions, keeping voltage within acceptable thresholds and avoiding an instability event. In summary, the hybrid MPC–fuzzy logic framework proposed in this paper is a novel solution that effectively promotes reactive power compensation and improves voltage stability performance in modern smart grids with more robustness, addictiveness and efficiency. This is an efficient application for real-time applicability and provides a good insight into the future power systems where intelligent control strategies will be implemented along with FACTS devices.