This paper presents a disturbance rejection method for time-delay systems. The configuration of the control system is constructed based on the equivalent-input-disturbance (HD) approach. A modified state observer is applied to reconstruct the state of the time-delay plant. A disturbance estimator is designed to actively compensate for the disturbances. Under such a construction of the system, both matched and unmatched disturbances are rejected effectively without requiring any prior knowledge of the disturbance or inverse dynamics of the plant. The presentation of the closed-loop system is derived for the stability analysis and controller design. Simulation results demonstrate the validity and superiority of the proposed method. (C) 2014 The Franklin Institute. Published by Elsevier Ltd. All rights reserved.