In this paper, the problem of adaptively compensating sensor uncertainties is addressed in a feedback based framework. In this study, sensor characteristics are modeled as parametrizable uncertain functions and a compensator is constructed to adaptively cancel the effects of sensor uncertainties, to generate an adaptive estimate of the plant output. Such an estimated output is used for the feedback control law. Adaptive control schemes using a model reference approach with sensor uncertainty compensation are developed for LTI plants with either known or unknown plant dynamics. A new feedback controller structure is developed for the case when the plant dynamics is unknown, to handle the plant and sensor uncertainties. Simulation results are presented to show that the proposed adaptive sensor uncertainty compensation designs significantly improve system tracking performance. (C) 2008 Elsevier Ltd. All rights reserved.