A recurrent functional-link (FL)-based fuzzy-neural-network (FNN) controller with improved particle swarm optimization (IPSO) is proposed in this paper to control a three-phase induction-generator (IG) system for stand-alone power application. First, an indirect field-oriented mechanism is implemented for the control of the IG. Then, an AC/DC power converter and a DC/AC power inverter are developed to convert the electric power generated by a three-phase IG from variable frequency and variable voltage to constant frequency and constant voltage, respectively. Moreover, two online-trained recurrent FL-based FNNs are introduced as the regulating controllers for both the DC-link voltage of the AC/DC power converter and the AC line voltage of the DC/AC power inverter. Furthermore, IPSO is adopted to adjust the learning rates to improve the online learning capability of the recurrent FL-based FNNs. Finally, some experimental results are provided to demonstrate the effectiveness of the proposed recurrent FL-based FNN-controlled IG system.