AbstractForce estimation in multibody dynamics relies heavily on knowing the system model with a high level of accuracy. However, in complex mechatronic systems, such as robots or mobile machinery, the values of model parameters may be only roughly estimated based on design information, such as CAD data. The errors in model parameters consequently have a direct effect on force estimation accuracy because the estimator compensates the erroneous inertia, friction, and applied forces by changing the value of estimated external force. The objective of this study is to present the workflow of system identification and state/force estimation of an open-loop multibody structure. The system identification utilizes a linear regression identification method used in robotics adapted to the multibody framework. The semirecursive multibody formulation, in particular, is studied as a formulation for both system identification and force estimation. The multibody state/force estimator is constructed using extended Kalman filter. The specific aim of this paper is to demonstrate the utilization of these per se known modeling, identification, and estimation tools to address their current lack of integration as a complete toolchain in virtual sensing of multibody systems. The methodology of the study is tested with both artificial and experimental data of Stäubli TX40 robotic manipulator. In the experimental analysis, an openly available benchmark data set was used. Artificial data were created by running an inverse dynamics analysis with inertia and friction parameters taken from literature. The results show that the multibody inertia and friction parameters can be accurately identified and the identified model can be used to produce decent estimates of external forces. The proposed multibody system identification method itself opens new opportunities in tuning the multibody models used in product development. Moreover, effective use of system identification together with state estimation helps to build more accurate estimators. When the system model is accurately identified, the capability of state estimator to observe unknown inputs, such as external forces, is significantly enhanced.