A model helicopter has more versatile flight capability than the fixed-wing aircraft and it can be used as an unmaned vehicle in hazardous area. A helicopter, similar to other aircrafts, is an unstable, multi-input multi-output nonlinear system exposed to strong disturbance. So it should be controlled by robust control theories that can be applied to multivariable systems. In this study, motion equations of hovering are established, linearized and transformed into a state equation form. Various parameters are measured and calculated in other to obtain the stability derivatives in the state equation. Hovering flight controller is designed using the digital LQG/LTR(Linear Quadratic Gaussian/Loop Transfer Recovery) control theory. The designed controller is tested by the nonlinear simulations and implemented on an IBM-PC/386. Experiments were carried out on a model helicopter attached to the 3-DOF gimbal. The designed controller showed satisfactory hovering capability to maintain the hovering for more than 40 seconds.