We consider the state and disturbance estimation problem for a linear
system with uncertainties as additive deterministic disturbances. Inst
ead of attempting to minimize the effects of the disturbance as in the
robust filters or to decouple the disturbance as in the unknown input
observers, it is proposed to estimate the disturbance and to use it t
o reduce the model error and thus to improve the state estimation. Thi
s technique is denoted as model error compensator (MEG). Sufficient co
nditions for achieving bounded disturbance estimation error are presen
ted. These conditions are different from those required in the unknown
input observers and the robust filter for state estimation only. In a
ddition, no differentiation of the measured signals is required. This
paper also discusses how existing state observers can be used with the
MEC as a two-step observer design strategy.