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A control strategy developed for hybrid wind-diesel system (HWDS) is presented in this paper. The proposed system consists of the induction generator based wind turbine generation (WTG) system, IGBT based power electronics converters, diesel generator (DG) unit and dump load (DL) system. Developed control strategy shares the required power generation between the WTG and DG unit. The control system operates the wind turbine to achieve maximum power extraction using maximum power point tracking (MPPT) scheme, and simultaneously controls the dump load to absorb excessive power generation, in turn regulates the frequency of power supply. The DG unit is controlled for supplementing the generated power from WTG to supply the complete load power demand. The complete system is modeled and simulated using SimPowerSystems toolbox from Matlab-Simulink software package.