This paper introduces the Modified Shuffled Frog Leaping Algorithm (MSFLA) for optimizing Power System Stabilizers (PSS) in multi-machine power systems. It formulates the PSS design as a multi-objective optimization problem focusing on damping factor and damping ratio, achieving superior performance in reducing low-frequency oscillations compared to Genetic Algorithm (GA) approaches. The effectiveness of MSFLA is validated through tests on various power systems, demonstrating improved stability under different operating conditions.