In this paper, we presented a hybrid controller by combining the advantages of both PID and Neuro controllers for automatic voltage regulator (AVR) system. A Neuro controller is designed using multilayer feedforward neural network and Levenberg-Marquardt backpropagation algorithm is used for training the network. Also, hybrid controller is achieved by blending the characteristics of classical PID and proposed Neuro controller using a switching mechanism based on the error. The proposed PID, Neuro and Hybrid controllers are simulated in MATLAB environment and their transient response parameters are compared. The simulation results clearly indicated the improvement in the transient output of the automatic voltage regulator system with proposed hybrid controller even in the presence of uncertainties in the system.