Plug-in electric vehicles (PEVs) can serve in discharge mode as distributed energy and power resources operating as vehicle-to-grid (V2G) devices and in charge mode as loads or grid-to-vehicle (G2V) devices. It has been documented that PEVs serving as V2G systems can offer possible backup for renewable power sources, can provide reactive power support, active power regulation, load balancing, peak load shaving,% and current harmonic filtering, can provide ancillary services as frequency control and spinning reserves, can improve grid efficiency, stability, reliability, and generation dispatch, can reduce utility operating costs and can generate revenue. Here we show that PEVs can even improve power grid transient stability, that is, stability when the power grid is subjected to large disturbances, including bus faults, generator and branch tripping, and sudden large load changes. A control strategy that regulates the power output of a fleet of PEVs based on the speed of generator turbines is proposed and tested on the New England 10-unit 39-bus power system. By regulating the power output of the PEVs we show that (1) speed and voltage fluctuations resulting from large disturbances can be significantly reduced up to 5 times, and (2) the critical clearing time can be extended by 20-40%. Overall, the PEVs control strategy makes the power grid more robust.