For feedback control of a linear dynamic system the optimum linear state regulator (OLSR) can be implemented only if all states are available for feedback. This work demonstrates that when only the output state is available for feedback, a nonlinear controllers can give improved performance over that obtained by a proportional controller. This paper found the optimal control law by dynamic programming and principles of optimalityl. This, performances of both proportional and nonlinear controllers are compared with performance of optimum linear state regulator.