The ultracapacitor module has recently been recast for use in hybrid energy storage systems (HESSs). As a result, accurate state-of-charge (SOC) estimation for an ultracapacitor module is as important as that of primary sources in order to be utilized efficiently in an energy storage system (ESS). However, while SOC estimation via the open-circuit voltage (OCV) method is generally used due to its linear characteristics compared with other ESSs, this method results in many errors in cases of highcurrent charging/discharging within a short time period. Accordingly, this paper introduces a dynamic SOC estimation algorithm that is capable of SOC compensation of an ultracapacitor module even when there is a current input and output. A cycle profile that simulates the operating conditions of a mild-HEV was applied to a vehicle simulator to verify the effectiveness of the proposed algorithm.