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Automatic generation control (AGC) plays a very important role in power system; its main role is to maintain the system frequency and tie line flow at their scheduled values during normal period in an interconnected system. This work presents the automatic generation control (AGC) of an interconnected two area system. For carrying out AGC for the two area system conventional and fuzzy logic controller is used in and change in generation in both the areas and change in overall frequency of the system is examined using MATLAB SIMULINK. Area Control Error (ACE) is measured and results of the conventional method and the fuzzy logic are compared. The aim of the proposed controller is to restore the frequency to its nominal value in the smallest possible time whenever there is any change in the load demand etc.