Abstract In this paper, a two —level hierarchical parameter estimator of a class of large scale systems is given based on decomposition and coordination theory. By large scale systems here we mean those systems which can’ t be represented by low order models. In the estimator, the problem of estimating parameter vector θ(k) is divided into some subproblems of estimating lower order parameter vector θ(k) in parallel. Since the algorithm of it is simple and the computational speed is fast, it is suitable for on-line parameter estimation of the large scale systems. Then a kind of adaptive controller scheme is presented. It consists of the two—level hierarchical estimator and a pole assignment controller in the certainty equivelence principle. It is suitable for the large scale systems. Finally, two simulation examples are given to illustrate the effectiveness of this adaptive controller. The simulation results are satisfactory. The two— level hierarchical estimator and adaptive controller can also be applicable to some interactive multi —input multi —output large scale systems indirectly if it is decomposed into a set of generalized single —input single —output subsystems by pre —estimating all of the interactions in the systems.