In this paper a new approach is presented for discrete time sliding mode control based on multi-rate output samples. It will be shown here if the outputs of the system are some of the states only or system is in a special form, multi-rate observer i.e the state of the system can be obtained by the matrix inverse of lower dimension than the existing multi-rate observer proposed earlier. This can be further used to obtain sliding mode control based on multi-rate output samples. © ICROS.