This paper presents a design of a teleoperation system using time forward observer-based adaptive controller. The controller is robust to the time-variant delays and the environmental uncertainties while assuring the stability and the transparent performance. A novel theoretical framework and algorithms for this teleoperation system have been built up with neural network-based multiple model control and time forward state observer. Conditions for stability and transparency performance are also investigated. © ICROS, KIEE and Springer 2011.