The tethered satellite system (TSS) was envisioned as a means of extending a satellite from its base (space shuttle, space station, space platform) into a lower or higher altitude in order to more efficiently acquire data and perform science experiments. This is accomplished by attaching the satellite to a tether, deploying it, then reeling it in. When its mission is completed, the satellite can be returned to its base for reuse. If the tether contains a conductor, it can also be used as a means to generate and flow current to and from the satellite to the base. When current is flowed, the tether interacts with the Earth's magnetic field, deflecting the tether. When the current flows in one direction, the system becomes a propulsive system that can be used to boost the orbiting system. In the other direction, it is a power generating system. Pulsing the current sets up a dynamic oscillation in the tether, which can upset the satellite attitude and preclude docking. A basic problem occurs around 400-m tether length, during satellite retrieval when the satellite's pendulous (rotational) mode gets in resonance with the first lateral tether string mode. The problem's magnitude is determined by the amount of skiprope present coming into this resonance condition. This paper deals with the tethered satellite, its dynamic phenomena, and how the resulting problems were solved for the first tethered satellite mission (TSS-1). Proposals for improvements for future tethered satellite missions are included. Results from the first tethered satellite flight are summarized. Ryan, R. S. and Mowery, D. K. and Tomlin, D. D. Marshall Space Flight Center DYNAMIC CHARACTERISTICS; SATELLITE ATTITUDE CONTROL; SPACECRAFT CONTROL; SPACECRAFT DOCKING; SPACECRAFT MOTION; SPACECRAFT STABILITY; TETHERED SATELLITES; TETHERING; DEPLOYMENT; DYNAMIC CONTROL; RESONANCE; SPACE SHUTTLE ORBITERS; SPACECRAFT MANEUVERS; SPACECRAFT RECOVERY...