Overflow loss is one of the main reasons for the inefficiency of the hydraulic system. Aiming at the overflow loss in the hydraulic system, an energy recovery system based on a hydraulic motor and generator is proposed. Further, a pressure monitoring and control strategy based on variable speed control for electric generator is adopted, which can control the pressure differential between the inlet and outlet of the proportional relief valve as a small value, and achieve the purpose of energy recovery by reducing the loss of the pressure differential between the inlet and outlet of the relief valve. Through establishing a simulation system model and test platform, the stability, step response characteristics and energy saving of the system are studied. The results show that the energy recovery unit at the outlet of the relief valve does not affect the normal operation of the relief valve, but also greatly reduces the pressure regulation deviation. Besides, the efficiency of overflow loss recovery system about is 67%.