IN THIS PAPER A STOCHASTIC OPTIMAL FEEDBACK CONTROLLER IS DESIGNED FOR THE DIZBAD WIND POWER PLANT. THIS SYSTEM INCLUDES AN INDUCTION GENERATOR WHICH HAS BEEN CONNECTED THROUGH A FIXED-RATIO GEAR BOX TO THE WIND TURBINE ROTOR. A STATIC VAR COMPENSATOR (SVC) IS USED FOR VOLTAGE REGULATION IN THE INDUCTION GENERATOR TERMINALS. THE NONLINEAR MODELING OF THE WIND TURBINE, INDUCTION GENERATOR, STATIC VAR COMPENSATOR AND TRANSMISSION LINE FOR STATE AND OUTPUT CONTROL OF THE GENERATOR HAS BEEN DONE. THE OVERALL SYSTEM IS IN STATE SPACE NONLINEAR EQUATIONS WITH ORDER OF 13. A STOCHASTIC OPTIMAL STATE ESTIMATOR IS DESIGNED TO RECONSTRUCTS THOSE STATES WHICH ARE NEED TO USE IN A STOCHASTIC CONTROLLER. THE RESULTS HAVE BEEN COMPARED WITH EXTENDED KALMAN FILTER (EKF) WHICH IS COMBINED WITH A STANDARD FEEDBACK CONTROLLER DESIGN. SIMULATION RESULTS SHOW THE RESPONSE OF THE CLOSED LOOP SYSTEM HAS A GOOD DAMPING AND FAST RECOVERY UNDER DIFFERENT TYPE OF LARGE WIND DISTURBANCES.