This paper proposes a mechatronic suspension system with capabilities of energy regeneration and sky- hook (SK) control incorporated into the mechanism. The system overcomes the tradeoffs between energy consumption and ride comfort in an active suspension system. Central to the concept is development of a coupled switched-mode rectifier (SMR) capable of providing either a positive or negative damping ratio by alternating between regenerative and motoring modes. Using the proposed circuit, an active sky-hook control strategy is utilized to offer continuous damping force that improves the vibration isolation significantly. Simulation results presented demonstrate the directions of power flow in both regenerating and motoring modes to verify performance of the SMR.