In this paper, the conventional Smith predictor is modified, which leads to significant improvements in its regulatory capacities for reference inputs and disturbances. The proposed modification utilizes the existing prediction of the conventional time delay compensator and decouples the setpoint response from the disturbance response. The setpoint response and the disturbance response of the closed-loop system are adjusted by two parameters, respectively. This allows the designer to optimize them simultaneously. Illustrative examples are provided to show the advantages of the modified scheme.