The design and refinement of a tethered hovering platform into a feasible working system is presented. To determine a starting point for the design, a detailed historical search was conducted to find the history and the current state of such technology. Real world current needs are analyzed to produce a mission specification and to drive the preliminary vehicle design. Analysis of environmental conditions and decisions about an initial payload package are made in conjunction with motor and propeller sizing. Initial concept testing to discover feasibility and operational issues was performed; from this, instability issues were discovered. Analyzing these instability issues using known rotorcraft and momentum effects, in conjunction with flight testing, yields possible solutions to the problem. The use of constrained layer dampers as a means of passive stabilization is addressed and suggested as the preferred solution. Testing of passive constrained layer damping verifies the stability of the solution. The system components and manufacturing cost is presented in comparison to current systems using active stabilization.