This paper presents a demodulation algorithm based on the synchronous integrator circuit for the MEMS tuning fork gyroscope utilizing the digital processing technology. The synchronous integral demodulator (SID) is adopted to demodulate the drive-detection signal and sense-axis output signal separately. Combining with automatic gain control and phase-locked loop technology, the closed-loop control of drive mode has been implemented, and high precision output of the gyroscope has been achieved. The simulation results have verified the effectiveness of the synchronous integrator circuit, which is in good agreement with the theoretical analysis. Compared with other demodulation algorithms, the SID has the advantages of the lower noise level, a better ability to attenuate the harmonics, and the best hardware efficiency. The frequency characteristic of the synchronous integrator is also analyzed, which is vital to the bandwidth of gyroscope. The print circuit board based on field-programmable gate array digital circuit is manufactured and the corresponding experiment is carried out. The experimental results show that the SID algorithm of digital control system for the gyroscope developed in our laboratory has achieved a good performance. The bias instability of tested gyroscope is measured to be 0.2 degrees l/h with the angle random walk of 0.14 degrees/root h and the nonlinearity of the scale factor is < 60 ppm with the measurement range of +/- 100 degrees/s.