In this paper an attempt has been made to present the development of FPGA based IIR Filter implementation of PID controller which takes care of issues like the derivative kick, integral saturation, bumpless transfer from manual to automatic mode. The paper starts with an overview of the FPGA technology and motivation for using it in control and then moves on into the philosophy of closed loop PID control. The design issues are explored next using MATLAB and SYSTEM GENERATOR tools. Finally simulation results are presented. Also a performance comparison between the conventional PID control and the 2-Degree of Freedom PID control for a second order process is presented.