This work deals with a sliding mode control scheme for discrete time nonlinear systems. The control law synthesis problem is subdivided into a finite number of subproblems of lower complexity, which can be solved independently. The sliding mode controller is designed to force the system to track a desired reference and to eliminate unwanted disturbances, compensating at the same time matched and unmatched parameter variations. Then, an observer is designed to eliminate the need of the state in the controller implementation. This design technique is illustrated determining a dynamic discrete time controller for induction motors. (C) 2008 Elsevier Ltd. All rights reserved.