Most industries use induction motors for their applications (i.e. compressors, pumps, etc.) and these types of motors consume more reactive power. As a result, these industries either have to pay an additional cost for this power (Var), which produces more losses in the network, or they have to correct their power factor. Most of the industries prefer to correct their poor power factor by insulating a capacitor bank across loads for Var compensation. The selection of synchronous motor is basically to maximize the efficiency and reduce the penalty cost, or even the cost of the correction power factor. The aim of this project was to investigate the replacement of some medium-sized induction motors with synchronous motors in a model industrial network for optimal and efficient operation. The effects of the harmonic and motor starting on the industrial network were investigated. In this project the ERACS software was used for load flow study.Over all, the results indicate that the use of synchronous motors technique for power factor correction in this type of industrial network is more desirable and practical in terms of both operation and cost.