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This study presents the design of a fuzzy gain scheduled proportional-derivative (FGSPD) controller with integral controller for automatic generation control (AGC) of two-area multi unit power system. The power system investigated comprises of two reheat type thermal units operating in parallel in area-1 and two hydro units of same capacity operating in parallel in area-2. The dynamic response has been studied for step load disturbance in area-1 considering settling times, overshoots and undershoots of the frequency and tie-line power deviations as performance indices. The proposed fuzzy based controller is compared against conventional integral and optimally tuned proportional-integral-derivative (PID) controllers. The Comparative analysis of the performance indicates that the proposed controller gives the best results among all the controllers. The simulations have been performed using Matlab.