Since childhood, we have been trying to balance various objects like balancing stick on ground, walking on a narrow wall, cycling, etc. And there are similar examples ,which can be qouted from industrial applications and products like Segway, scooter, robotic applications, etc. From this point, we worked on a similar concept in this project with a focus on transportation industry, since many researchers and engineers have become interested in this type of robot, because it utilizes a control system in order to be able to stabilize an unstable system by using efficient microcontrollers and sensors. The project undertook the construction and implementation of a two-wheeled self balancing robot, which has the capability of balancing itself. The process of self-balance is similar and related to how a human balances. The human brain recognizes the force due to gravity on the vestibular system and is able to discern the direction it is coming from. Then, the impulses will be sent from the brain to the muscles in the limbs to help provide balance. Similarly, the information from sensors will be received and interprets by microcontroller. Then, the microcontroller will send commands to the system for balance maintaining. In this project we built a two-wheeled self-balancing robot with additional functionalities. The robot consisted of an Arduino microcontroller, gyroscope, accelerometer, motors and two wheels. It was able to stabilize on the plane horizontally. Additional functionalities included making the robot traverse on flat surface and avoiding obstacles.