The overall objective of this study is to develop a control algorithm that improves performance and reliability of the two-axis solar tracker, focusing on optimization of the controller board, drive hardware and software. An embedded two-axis solar tracking system and real-time control algorithm was developed for improving photovoltaic panel utilization. The system consists of a microcontroller, two motor-control modules, two DC motors, feedback devices, and other sensors needed for robust operation. The real-time control algorithm enables the solar tracker to be used as a stand-alone system, which can operate automatically without external control. The system combines two different control methods: the open-loop method and the closed-loop method. An experimental prototype was built and field results have proven the good performance of the developed tracking system.