A model reference controller was designed for a unstable second-order system with time delay. The method basically derives the control law so as to make the error dynamics decay as per a third-order model. The resultant feedback control system was that of a lead-lag filter on the measurement y and a conventional Proportional - Integral - Derivative (PID) controller with a lead-lag filter in the forward path. The performance of the control system for both the servo and regulatory problems was better than that of Panda (Chemical Engineering Science, 64, pp. 2807-2816, 2009). The controller is robust for uncertainties in the model parameters such as time delay, time constant or process gain. © 2013 Copyright Indian Institute of Chemical Engineers.