In this paper, the modeling and control strategy of a wind-diesel generation system are discussed. In the proposed topology, the diesel engine and the wind turbine are both variable-speed machines, allowing maximum fuel efficiency and optimal energy capture from the wind. A vector-controlled doubly fed induction generator is used in each generation system to provide fixed voltage and frequency to the load. The diesel unit balances the system power and changes the speed according to the power demand in order to minimize the fuel consumption. The electrical torque of the wind system generator is regulated to maximize the energy capture of the wind turbine. The advantages of operating a diesel engine at variable speed are discussed. The dynamic and steady-state operation of the wind-diesel system, including voltage and frequency control, active power balancing, and control of the reactive power supplied to the grid/load are analyzed in this paper. Experimental results, from a 3-kW experimental prototype are presented in this paper.