The present work proposes a systematic methodology for the optimal selection of controller parameters in the sense of minimizing, a performance index, which is a quadratic function of the tracking error and the control effort. The performance index is calculated explicitly as an algebraic function of the controller parameters by solving Zubov's partial differential equation (PDE). Standard optimization techniques are then employed for the calculation of the optimal values of the controller parameters. The solution of Zubov's PDE is also used to estimate the closed-loop stability region for the chosen values of the controller parameters. The proposed approach is finally illustrated in a chemical reactor control problem. (C) 2004 Elsevier Ltd. All rights reserved.