In this research, we aim to use the flatness control theory to develop a useful control scheme for a single machine connected to an infinite bus (SMIB) system taking into account input magnitude and rate saturation constraints. We adopt a fourth-order nonlinear SMIB model along an ex-citer and a turbine governor as actuators. According to the flatness-based control strategy, first we show that the adopted nominal SMIB model is a flat system. Then, we develop a full linearizing state feedback as well as an outer integral-type loop to ensure suitable tracking performances for the power and voltage as well as the angular velocity outputs. We assume that only the angular velocity of the generator is available to be measured. So, we provide a linear Luenberger observer to estimate the remaining states of the system. Also, the saturation nonlinearities are transferred to the linear part of the system and they are canceled out using their estimations. The efficiency and usefulness of the proposed observer-controller against faults are illustrated using simulation tests in Eurostag and Matlab. The results show that the clearing critical time of the introduced methodology is larger than the classical control approaches and the proposed observer-based flatness controller exhibits over much less control energy compared to the classic IEEE controllers.