Automatic Generation Control (AGC) is a critical component within the framework of modern power systems, playing a pivotal role in maintaining the delicate balance between electricity generation and consumption. As power systems continue to evolve with increasing integration of renewable energy sources and advancements in technology, the significance of AGC becomes even more pronounced. This report aims to provide a comprehensive overview of Automatic Generation Control, examining its fundamental principles, key functionalities, and the challenges and opportunities it presents in the dynamic landscape of contemporary power systems. Through a detailed exploration of AGC’s role in ensuring grid stability, this report seeks to shed light on the crucial mechanisms that underpin the efficient and reliable operation of power networks.