An uninterruptable power source (UPS) was developed using flywheel energy storage. The flywheel energy storage unit, which replaces the conventional chemical battery, is maintenance free, has long life and emits no pollution. Charging and discharging control strategies were presented for the flywheel. The high speed flywheel stability and the charging curve characteristics were studied to develop anintelligent combined control system with optimized flywheel charging. During discharging, the motor energy recovery algorithm keeps the dc voltage stable which simplifies the power system control. Experiment results show that the UPS has better characteristics and dynamic response.