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Dynamometer is an automotive device that is used to perform engine testing. From this test, engine information such as power, torque, and emition can be obtained for design and analysis purposes. Eddy brakes dynamometer is considered because it is considerably more effective and controllable. In order to design a brakes control system based on state space approach, a state space model is required. ADALINE (Adaptive Linear Network) method is selected to identify state space model of the system from input-output data. The state space based PID controller is then applied by selecting the appropriate parameters using Ackerman pole placement method. Simulation and experimental results show that the closed loop responses satisfiy the design requirements.