A floating device having active stabilization and a method for actively stabilizing a floating device employs a floating device that operates underwater and which may be tethered to the floor of the body of water. The floating device having active stabilization includes an internal sensor assembly which measures angular velocity and generates a real time output corresponding to a measured angular velocity and a counter-rotation assembly which generates in real time mechanical energy in the form of rotation in response to the real time output of the sensor assembly that causes a counter-rotation torque on the device body that opposes the measured angular velocity. The counter-rotation torque may be imparted by accelerating a flywheel as a reaction wheel in the opposite direction of the desired counter-rotation torque, thereby achieving stability of the device body in the form of minimizing rotation.