An energy recovery system for a first machine includes a cylinder member, and a piston slidably disposed in the cylinder member and operatively coupled to a frame of the first machine. The piston and the cylinder member together define a chamber configured to receive a hydraulic fluid. The energy recovery system includes an accumulator in fluid communication with the chamber and a first valve assembly for regulating a flow of the hydraulic fluid from the chamber to the accumulator. The energy recovery system includes a controller configured to receive a signal indicative of a parameter of a payload that is to be received from a second machine during a work cycle thereof. The controller is configured to control the first valve assembly, during the work cycle of the second machine, to at least partially open the fluid communication between the chamber and the accumulator based on the received signal.