The seismic response of a single–story steel building frame with a smart base isolation system is evaluated. The isolation system consists of sliding bearings combined with an adaptive fluid damper. The damping capacity of the fluid damper can be modulated in real time based on feedback from the earthquake ground motion and superstructure response. The adaptive capabilities of the fluid damper enable the isolation system displacement to be controlled while simultaneously limiting the interstory drift response of the superstructure. This paper concentrates on the development of analytical models of the smart isolation system and control algorithms for operation of the system. In general, the results from numerical simulations demonstrate that, for disparate earthquake ground motions, the smart isolation system is capable of simultaneously limiting both the response of the isolation system and the superstructure.