Simple Tuning formulae are provided for optimal PID controller settings for unstable first order plus time delay systems. The method is based on minimization of integral squared errors (ISE). A method of calculating the set point weighting parameter is proposed to reduce the overshoot for servo problems. The performances of the proposed PID settings are compared with the settings recently proposed by Huang and Chen (1997, 1999) for both the servo and regulatory problems. The performance of the controller is also evaluated under parameter uncertainty in time delay and separately in process gain. Tuning formulae are given for PI controller along with the set point weighting. The performance of the PI controller is compared with that of Poulin and Pomerleau (1996). Two simulation studies, one on control of an unstable nonlinear bioreactor and a second on an unstable chemical reactor using the proposed PID controller settings, show improved performances both for servo and regulatory problems.