Abstract: A hydraulic system for recovering hydraulic energy, the hydraulic system made of at least: a first actuator for generating hydraulic energy and providing fluid under pressure; a tank line for receiving the fluid under pressure drained from the first actuator; a second actuator driven by the fluid under pressure drained from the first actuator; a recovery line for supplying the fluid under pressure drained from the first actuator. The system further includes a pressure compensating valve which controls flow of fluid in the tank line and maintains a fluid pressure differential across a first directional control valve. The first pressure compensating valve is provided with a first fluid pressure sensing line in communication with the recovery line and a second fluid pressure sensing line in communication with the first actuator.