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This paper presents a novel control strategy for variable speed permanent magnet synchronous generator (PMSG) based wind-battery hybrid system in an isolated network. The proposed strategy comprises of chopper based speed control of generator for maximum power point tracking (MPPT) under varying wind conditions. A buck-boost converter is used to maintain constant DC-Link voltage and to interface an efficient battery energy storage system (BESS) in order to meet fluctuating load demand. The main purpose of BESS is to maintain power balance by absorbing power during peak generation and to release it during least or no power generation. The proposed strategy is realized and simulated in MATLAB/SPS environment. The analysis of simulated results demonstrates the smooth operation of proposed system in an isolated network.