This paper presents the development and control of a two wheeled car-like mobile robot using balancing mechanism whose heading control is done by turning the handle. The mobile inverted pendulum is a combined system of a mobile robot and an inverted pendulum system. A sensor fusion technique of low cost sensors such as a gyro sensor and a tilt sensor to measure the balancing angle of the inverted pendulum robot system accurately is implemented. Experimental studies of the trajectory following control task has been conducted by command of steering wheel while balancing.