In this paper, a modified skyhook control for the semi-active Macpherson suspension system is investigated. A new model for the semi-active type suspension, which incorporates the rotational motion of the unsprung mass, is introduced and an output feedback control law using the skyhook control method is derived. The gains in the skyhook controller are adaptively adjusted by estimating the road conditions. Because two vertical acceleration sensors, one for the sprung mass and another for the unsprung mass, are used rather than using the angle sensor for the rotational motion of the control arm, the relative velocity of the rattle space is filtered using the acceleration signals. For testing the control performance, the actual damping force has been incorporated via the hardware-in-the-loop simulations. The performances of a passive damper and a semi-active damper are compared. Simulation results are provided.