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The main objective of this paper is to study and validate the effectiveness of the tensor-product (TP)-model transformation in a state-dependent nonlinear controller design for a prototypical aeroelastic system that exhibits a variety of control phenomena such as limit cycle oscillation, flutter, and even chaotic vibrations. In this paper, the TP-model transformation is applied to transform the identified analytic model of the prototypical aeroelastic system to TP-model form whereupon linear matrix inequality-based controller-design theorems, within the parallel-distributed-compensation (PDC) frameworks, can be immediately executed. Numerical simulations are used to provide empirical validation of the control results. The effectiveness of the controller design is compared to the former approaches.