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In this paper an optimal state regulator is designed for the twin rotor multi-input-multi-output (MIMO) system. The twin rotor MIMO system (TRMS) exemplifies a high order nonlinear system with significant cross couplings. From the nonlinear model of TRMS a linearised model is obtained and a controller is designed to regulate the states. The controller gain is updated iteratively, until optimal value is reached. Finally simulation results are presented to show the effectiveness of the proposed controller for the TRMS.