An energy storage system and a controlling method thereof are provided. Accordingly, an operation mode of the energy storage system is stably changed. The energy storage system includes: a battery; an inverter for receiving a first power from an external source and generating a second power; and a converter coupled between the battery and both the external source and the inverter. The converter is configured to enter an off mode between a charge mode for charging the battery and a discharge mode for discharging the battery.