The study deals with controlling the velocity of hydraulic motor with PI controller through the control of displacement pump which has higher efficiency than valve-controlled system. This was done as follows. First, we modified original displacement pump and designed this electrohydraulic puma system. Second, after experimenting static and dynamic characteristics, we identified system parameter of approximated model. Lastly, to control the velocity of hydraulic motor we controlled the angle of the swash plate of displacement pump. Test carried out in the laboratory shows that transient and steady state response could be improved by PI controller reducing power loss.