In this study, a valveless energy saving hydraulic position control servo system controlled by two pumps is investigated. In this system, two variable speed pumps driven by servomotors regulate the flow rate through a differential cylinder according to the needs of the system, thus eliminating the valve losses. The mathematical model of the system is developed in MATLAB Simulink environment. A Kalman filter is applied to reduce the noise in the position feedback signal. In the test set up developed, open loop and closed loop frequency response and step response tests are conducted by using MATLAB Real Time Windows Target (RTWT) module, and test results are compared with the model outputs.