This paper presents a scheme for the parameter estimation and stabilization of unstable systems, such as inverted pendulum systems. First a stable feedback loop is constructed for an inverted pendulum system and then its parameters are estimated based on input-output data, a real-coded genetic algorithm(RCGA) and the model adjustment technique. Then, a PI-type LQ control scheme is designed based on the estimated model. The performance of the proposed algorithm is demonstrated through a set of simulation and experiment.