The paper has analyzed the four tank system (FTS) from the mechanism modeling and has also established the nonlinear and linear mathematical model. The FTS is a typical control system with nonlinear, coupling and time delay characteristics which can be used to test the applications of different control algorithms on complex systems. The aim of the process is to keep the liquid level in the tanks at the desired values. Here, Fuzzy Modified Model Reference Adaptive Control (FMMRAC) is proposed and is applied to the tank system to test its effectiveness. The response of the FMMRAC controller is verified and is compared with other control algorithms through simulation. The performance of the closed loop system is simulated using LabVIEW software. The method used here is validated using the simulated results.