This paper deals with implementation of self-tuning PID controller on low-cost 8-bit Motorola 68HC908GP32 microcontroller. The process is identified using modifed recursive least squares method with adaptive directional forgetting resulting in delta-model representation of controlled plant delta-model representation was chosen in order to achieve lower sampling time periods and better numerical stability of identification process. Control part of algorithm utilizes digital PID controller whose parameters are designed by pole placement method. Functionality of created software was verified by controlling real laboratory heat plant using HC908GP32-Starter Kit development board which is based on Motorola 68HC908GP32 microcontroller.