Twin Rotor Multi-input-multi-output System (TRMS) resembles a desktop version of a non-linear helicopter model. It consists of two rotors namely tail rotor and main rotor. A model based on first principle modeling approach is designed in MATLAB Simulink environment. An adaptive control scheme based on Model Reference Adaptive Systems (MRAS) theory is implemented for tracking the desired trajectory with changing system parameters and disturbances. MRAC based Lyapunov Theory is used to adjust the gains for guaranteeing stability and converges the error to zero under stochastic conditions. The output of the TRMS Model is far better for MRAC based Lyapunov Approach than compared to PID. The main objective of this project is to stabilize the non-linear TRMS model. © BEIESP.