This proposal addresses full digital control of the Line of Sight (LOS) Stabilization system required for advanced infra-red (IR) seekers employing strap down sensors and inertially stabilized optics, while maintaining the LOS degrees of freedom to support missile interceptor requirements. The effort proposed is an extension of a proof of concept demonstration conducted by Aero Thermo Technology, Inc. for the AIT Program Office. The proof of concept demonstration showed that a conceptually simple discrete-time control system algorithm can be hosted in a Programmable Logic Device (PLD), and that execution can be performed with a time delay of significantly less than one microsecond. The proposed effort is to investigate and demonstrate several innovative approaches to resolve issues of attaining the full performance potential of the digital control algorithm. While risk exists, the results are expected to increase the flat amplitude/phase response by 20% to 30%. By employing innovative approaches such as Discrete/Continuous Control and Bumpless Discrete-Time Control to this application, it is possible to reach both the requirements and goals of the AIT LOS Stabilization system in a commercially available digital implementation using either a Programmable Logic Device or a Field Programmable Gate Array.