Abstract This paper discusses the development of a single-lift and dual-lift helicopter underslung load transportation system for practical applications. A control law is developed to damp the load swing and stabilize the oscillation while performing the transportation task. For the dual-lift system, the load transportation is achieved by using a load distribution controller, developed for this purpose, to maintain equal load distribution among the vehicles. The load damping and load distribution controllers require accurate measurement of load states, which is achieved through the design and development of innovative, simple, and lightweight sensors units, namely, load tension measurement unit (LTMU) and load swing measurement unit (LSMU). LTMU sensor consists of a unique design that utilizes a flexi-force sensor, capable of measuring compressive load, for measurement of cable tension. The cable inclination in the longitudinal and lateral directions is measured by the LSMU sensor. These units are integrated with the helicopter autopilot for autonomous flight. The performance of the developed system is experimentally validated in the outdoor environment with single and dual-lift systems.