Abstract: One drawback in the standard formulation of generalized predictive control (GPC) is that stability and performance of the closed-loop system are strongly depending on the tuning parameters in the cost-function. It is presented in this paper that a new adaptive generalized predictive controller which enables the tracking and regulation performance to be treated separately. Its application in the design of the time-varying control system of a missile is given. The new controller proposed here enables the designer to utilize the tracking dynamics obtained from a reference model. This gives the designer more freedom in the choice of tuning parameters to achieve user-specifications on both tracking and regulation performance. Simulation illustrates the effectiveness and good performance of the controller.