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This paper is to present an advanced hybrid variable speed controller for controlling stand-alone diesel engine driven permanent generator systems to keep voltage and frequency constant and to maintain efficient operation of the connected loads. The controller is designed based on a hybrid method; a fuzzy logic core is developed and embedded in the variable speed controller combined with a conventional control method. By using the hybrid control method for the design of the variable speed controller, the hardware implementation can be accommodated in a less expensive, compact FPGA device. Consequently a highly robust low cost controller is made available. Simulation and experimental studies have shown that the resulting controller is effective and provides high stability.