Hashimoto and Kimura 1995 : Visual servo system is a robot control system which incorporates the vision sensor in the feedback loop. Since the robot controller is also in the visual servo loop, compensation of the robot dynamics is important for high speed tasks. Moreover estimation of the object motion is necessary for real time tracking because the visual information includes considerable delay. This paper proposes a nonlinear model-based controller and a nonlinear observer for visual servoing. The observer estimates the object motion and the nonlinear controller makes the closed loop system asymptotically stable based on the estimated object motion. The effectiveness of the observer-based controller is verified by simulations and experiments on a two link planar direct drive robot.