This paper presents a hybrid form of control which has both Fuzzy Logic Control (FLC) and Variable Structure Control (VSC) integrated. This proposed Fuzzy Variable Structure Control (FVSC) approach combines the power of approximate reasoning of FLC with the switching synthesis used in VSC. The FVSC is applied to control and stabilize a micro satellite in space. A model of satellite is used in this study in order to ensure the applications of FVSC in space. The reduced-order observer was introduced in this system to construct the unmeasurable state variable. The simulation results indicate that the fuzzy logic can be advantageously used to minimize the chattering and improve the time response in the satellite system.