High level of fault currents has become one of the most challenging issues, along with increased electrical energy consumption and power grid expansion. However, some of the previous work was limited to installing limiters on designs and installing them on small plans. In this study, the optimal placement of a resistive-type superconducting fault current limiter (RSFCL) to achieve good power system transient stability is proposed. The proposed method has several advantages. First, procedure fault analysis is applied to consider the magnitude of the short-circuit currents and the line located close to the generator for the placement of the device. Compared with other methods, it can directly find the exact line to be installed RSFCL. Second, the stability assessment is validated using the time domain simulation by installing limiters with varying capacities in any location. Third, parameters were analysed to evaluate the proposed method’s effectiveness, including angular speed, rotor angular velocity, and generator rotor angle in a multi-machine system. The result reveals that the placement of the limiter on the line with the most significant short-circuits value on the line closest to the generator increases the power system stability more than the placement in other locations.