Micro electro-mechanical systems (MEMS) are increasingly being used in measurement and control problems due to their small size, low cost, and low power consumption. The vibrating gyroscope is a MEMS device that will have a significant impact on stability control systems in the transportation industry. This paper investigates the application of a modified model reference adaptive control for MEMS gyroscope. Using this adaptive control algorithm, an estimation of the angular velocity and the damping and stiffness coefficients in real time is easily computable. Changing the conventional model reference input makes it feasible to utilize a low pass filter to remove unwanted oscillations caused by high adaptation gain. This new adaptive control technique enables quick compensation for large changes in the system dynamics, providing consistent estimation of gyroscope parameters including angular velocity and large robustness to parameter variations and external disturbances. The asymptotic stability of the mentioned adaptive controller is guaranteed using the Lyapunov direct method. Numerical simulation is presented to verify the effectiveness of the proposed control scheme.