This project presents a bilateral teleoperation system designed to improve haptic transparency and stability under mechanical imperfections, signal noise, and communication delay. Two planar haptic devices were configured in a leader–follower architecture, transmitting position commands to the follower and rendering measured interaction forces back to the operator. The hardware was redesigned to reduce friction, cable slip, structural compliance, and backlash, while a distributed 1 kHz embedded controller implemented kinematic mapping, PD-based joint tracking, and real-time force feedback. Direct UART communication, CRC-16 packet validation, interrupt-based encoder acquisition, and multi-stage signal conditioning were incorporated to improve communication reliability and suppress unstable motion. A time-domain Passivity Observer and Controller was further applied to detect active energy generation and inject adaptive damping, providing a unified platform for investigating the trade-off between transparency and stability in delayed haptic teleoperation.