The purpose of this paper is to find an effective control system for a hydraulic motor-load system using matlab. The Hydraulic control system consists of a hydraulic pump, a hydraulic proportional control valve, hydraulic pipelines, a hydraulic motor and a load system. The simulation models were verified by comparing the simulation results with measured data from the real hydraulic proportional position control system. In order to compensate the nonlinear friction characteristics in a hydraulic motor-load system, a discrete time PD controller and Friction torque observer has been applied.