The phasor measurement is one of the major thing in power system network. It help to find the all needed values in the power system network. The phasor measured by phase measurement units (PMU). The PMU placement of the bus system is done by various method. In our proposed we use the Ant colony optimization (ACO) for find the PMU placement. The PMU placement need reduce the PMU quantity and cover all buses in the power system. The PMU is help to monitor the overall bus system. The ACO is the one of the good algorithm it analysis the connected buses of overall system and optimize the place of the PMU for measure the major buses with minimum no of PMU. In our propose we use the ACO algorithm in basic IEEE bus system and find the connection of the buses using the binary matrix to optimize the binary matrix to find the correct and optimal placement of the IEEE bus system. This work is done by MATLAB Simulink model and the output is verified.