In this day and age automation has become more of a necessity than a luxury. Today despite of having a number of preventive safety measures to avoid road accident by two wheelers according to the surveys two wheeler lead in the number of road accidents. The need for a self-stabilizing system for two wheelers is on high demand among the customers. This paper determines a method to develop a self-balancing bike using gyroscopic effect. Gyroscopic effects finds its application in stabilizing systems for sectors like Military’s rocket guidance systems, aeronautics and aerospace industries, ships etc. We have incorporated this principle in our two wheeler model. In our current model we have used Inertial Measurement Unit(IMU), Encoder and servo motors, Momentum wheel to generate a counter torque to balance the roll in the two wheeler. The 3D model was designed using CAD modelling software and code was generated in the Arduino software. Designing and fabrication of the two wheeler was completed and was tested for different tilt angle subjected to varying rotational speed of momentum wheel to counter balance and stabilize itself.