In this research a controller based on velocity estimator for a Wheeled Inverted Pendulum (WIP) is designed and various numerical simulation studies are carried out. The WIP has stable and unstable equivalent points. To Keep the unstable equilibrium point, a controller should control carefully the wheels persistently. There are angle, angular velocity, displacement, and velocity of the WIP for controller inputs. The velocity is obtained by differentiating the encoder signals from the motor and is subject to the resolution of the encoder. An improved velocity detection method is proposed based on low resolution encoder and velocity estimator. Various numerical simulations are carried out for showing the validation of the velocity estimator in case of the inclined road condition.