A hydraulic system with margin based flow supplementation is provided. The hydraulic system includes a steering pump, an implement pump and a flow sharing device. The steering pump is associated with a steering circuit. The implement pump is associated with an implement circuit. The flow sharing device is disposed between the steering circuit and the implement circuit and is configured to operate in one of a first mode and a second mode. Further, the flow sharing device allows hydraulic fluid to flow from the implement circuit to the steering circuit in the first mode, when a margin pressure of the steering circuit is below a threshold value, and the flow sharing device stops the hydraulic fluid to flow from the implement circuit to the steering circuit in the second mode, when the margin pressure of the steering circuit is equal to or above the threshold value.