The computer and communication products were widely spread recently. The power quality demanded of above products is higher than the conventional electrical products. However, the power quality of the utility is degraded due to the wide use of nonlinear load. The requirement of uninterruptible power supply (UPS) is increased. The cost is the most important factor in designing the small capacity UPS. The single chip microprocessor based UPS has the advantages of lost cast, high flexible and simplified circuit. Hence, the single chip microprocessor is widely used in designing the small capacity UPS. In this paper a microprocessor-based controller is developed for a low cost UPS.