An inverted pendulum mounted on a cart and actuated by a hydraulic servo cylinder was designed and built. Position information of the cart was acquired via a potentiometer and a angle of the pendulum was sensed by an incremental encoder. These were collected by a DAQ board and processed through the Real-Time Windows Target software(included in simulink). A simulink graphical program was implemented as a controller of the hydraulic system that governed the motion of the cart in order to maintain vertical balance of the inverted pendulum. The purpose of this study is to develop an electro-hydraulic inverted pendulum system for a modeling and controling the intrinsic unstable system. The simulation results were compared with the experimental and verified.