The present work concerns a continuously stirred tank reactor (CSTR) system with delay in the recycle stream which cannot be accurately I/O linearized with the use of conventional I/O linearization design. However, by the systematic design and a step-by-step procedure, the state-delay dependent linearization algorithm can make the nonlinear time-delay system linear in an input-output sense. An output feedback controller is derived through combination of a state-delay dependent observer with the developed linearizing controller for the practical implementation, The advantage of the presented control methodologies is a straightforward design and contains single controller parameter for the tuning scheme. As per the example illustrated the proposed control designs with the simple tuning scheme can provide a satisfactory tracking performance and robustness.