The research work described in this paper concentrates on a new application of Constriction Factor Approach Particle Swarm Optimization (CFAPSO) technique for solving the problem of Congestion Management (CM) in power system. Nowadays due to increasing demand of electric power congestion management is most important in electric power economy. The particle swarm optimization (PSO) technique is swarm intelligence based fast working optimization method. Recently, a new evolutionary computation technique, called Constriction Factor Approach Particle Swarm Optimization (CFAPSO), has been proposed and introduced. In this paper, a novel Constriction Factor Approach PSO based approach is presented to work out Congestion problem in power transmission network. This method is effectively tested on IEEE 30-bus system using MATLAB Simulation. The simulation results proved the effectiveness of the proposed approach to reduce congestion in power system network.