Active vibration control of smart hull structure using Macro Fiber Composite (MFC) actuator is performed. Finite element modeling is used to obtain governing equations of motion and boundary effects of end-capped smart hull structure. Equivalent interdigitated electrode model is developed to obtain piezoelectric couplings of MFC actuator. Modal analysis is conducted to investigate the dynamic characteristics of the hull structure, and compared to the results of experimental investigation. MFC actuators are attached where the maximum control performance can be obtained. Active controller based on Linear Quadratic Gaussian (LQG) theory is designed to suppress vibration of smart hull structure. It is observed that closed loop damping can be improved with suitable weighting factors in the developed LQG controller and structural vibration is controlled effectively.