This paper presents an emergency control approach for preventing wide spread power interruption using multi-agent system. The proposed control algorithm is based on decentralized architecture of intelligent agents to achieve fast and accurate response when a catastrophic disturbance is identified in the system. By dividing the network into several areas, the voltage instability problem can be localized and countermeasures can be directed to the most affected area by the authorized local agent. This facilitates quick decision making within the system. The effectiveness of the proposed technique has been proved by a simulation of IEEE 57 bus test power system.