This paper presents an adaptive neuro fuzzy interference system (ANFIS) based approach to tune the parameters of the static synchronous compensator (STATCOM) with frequent disturbances in load model and power input of a wind-diesel based isolated hybrid power system (IHPS). In literature, proportional integral (PI) based controller constants are optimized for voltage stability in hybrid systems due to the interaction of load disturbances and input power disturbances. These conventional controlling techniques use the integral square error (ISE) criterion with an open loop load model. An ANFIS tuned constants of a STATCOM controller for controlling the reactive power requirement to stabilize the voltage variation is proposed in the paper. Moreover, the interaction between the load and the isolated power system is developed in terms of closed loop load interaction with the system. Furthermore, a comparison of transient responses of IHPS is also presented when the system has only the STATCOM and the static compensation requirement of the induction generator is fulfilled by the fixed capacitor, dynamic compensation requirement, meanwhile, is fulfilled by STATCOM. The model is tested for a 1% step increase in reactive power load demand at = 0 s and then a sudden change of 3% from the 1% at = 0.01 s for a 1% step increase in power input at variable wind speed model.