This paper brought a new trend giving a baseline algorithm which yield an approach for the design of the near optimal controller for the short range homing, guided missile. This new trend is based on the minimal order observer as state estimator. The problem is studied based on a linear discrete model taking into consideration the dynamics of the missile motion, the target manuvering capability, errors of measuring sensors and launch initial conditions. Quadratic criterion penalizing the state trajectory as well as the control is used. The near optimal control is derived through the linear quadratic Gaussian technique (L.Q.G.) and the minimal order observer as stato estimator. The derived control accounts for bounded control variable, Limited missile manuvering capability and bounded minimum terminal miss-distance at the intercept point.