A hydraulic actuator is a system that can provide a large power amplification in industries and factories. In this paper, mass lifter hydraulic actuator system to a desired displacement is designed using optimal control theory. MPC and LQR controllers are used to design and improve the performance of the hydraulic actuator. The hydraulic actuator system is linearized using Taylor series linearization method and designed using Matlab/Simulink tool. Comparison of the hydraulic actuator with MPC and (...) LQR controllers using three desired output displacement signals (step, sine wave and white noise) is done and simulation results have been analyzed successfully. For the desired step input signal, the hydraulic actuator system with MPC controller lower rise and settling times with small percentage overshoot as compared to the hydraulic actuator system with LQR controller and for the desired sine wave signal, the hydraulic actuator system with MPC controller almost track the desired sine wave input signal correctly as compared to the hydraulic actuator system with LQR controller. While for the desired white noise input signal, the hydraulic actuator system with MPC controller have tried to track the desired white noise input signal with small variation in amplitude as compared to the hydraulic actuator system with LQR controller. Finally the comparative simulation results prove the effectiveness of the proposed hydraulic actuator system with MPC controller. (shrink)