In this paper, the modelling and design of a multivariable controller for a smart thick composite cantilever beam with embedded shear sensors and actuators is investigated. The first 3 dominant vibratory modes are retained in the modelling of the composite beam. The beam is divided into 8 finite elements and shear piezoelectric patches are embedded into the master structure. These shear piezoelectric patches serve as sensors and actuators at 2 finite element locations to obtain a multivariable system with 2 inputs and 2 outputs. The beam is subjected to an external disturbance at the free end. The vibrations are damped out quickly when the POF controller is put in a feedback loop with the beam. The effect of placing the non-collocated sensor / actuator pairs at 2 finite element locations in between the two beam layers is observed and the conclusions are drawn. The closed loop responses with the output feedback gain were found to be satisfactory. Shear and axial displacements, neglected in the classical Euler-Bernoulli beam theory are considered in this research to produce an accurate beam model. © 2006 UK Simulation Society. All rights reserved.