Dynamic matrix control (DMC) was used to neutralize a continuous process stream in a stirred tank. In the presence of large disturbances, the controller performance deteriorated because of process-model mismatch. An adaptive DMC was successful in overcoming this difficulty. A closed-loop online method has been developed for identification of a process in terms of pseudo impulse response coefficients. Using this scheme a first-order with delay time model was fitted to the process. This model was subsequently used to update the dynamic matrix thus making the DMC algorithm adaptive.