Inverted pendulum system (IPS) is a well known problem used in control education and control research because of its nonlinear and unstable characteristics. IPS appears with various forms and it covers some control problems such as swing-up, swing-down, stabilization-up and down. In this study, IPS as a laboratory tool was controlled in real-time for control education purposes. IP is dealing with two common control problems: swing-up and stabilization of the pendulum. The pendulum should be brought up from downward or any position to upright position with swing-up controller and it should be balanced around its unstable equilibrium point along a limited track with stabilization controller. In the swing-up routine, 3 different nonlinear control methods were applied. They are strategic cart movements based on rules from energy analysis of the system, fuzzy logic controller (FLC) and Lyapunov function based control algorithm. Proportional-Integral-Derivative (PID), full state feedback (SF) and FLC methods were applied for stabilization of IPS. Real-time control algorithms were embedded in a powerful dSPACE DS1103 controller board programmed in Matlab-Simulink environment. The intention of this study is to provide better understanding of the control tasks for students. Control training levels of the students were seen to increase with this experimental tool. This tool helps students to establish the link between control theory and practice and researchers to test new control algorithms.