A method and system for providing memory management in a Real-Time Operating System (RTOS) based system are provided. The method includes creating a plurality of tasks with a two level stack scheme comprising a first level stack and a second level stack, scheduling a first task for execution by moving a stack pointer from the first level stack to the second level stack, determining whether the first task is pre-empted, allocating the second level stack to the first task in a second state if the first task is not pre-empted, changing an active task for execution, determining whether the first task relinquishes control from the second state and is waiting for a resource, moving the stack pointer back from the second level stack to the first level stack if the first task relinquishes itself and providing the second level stack for use by a second task.