An inverse heat conduction problem(IHCP) arises when unknown heat fluxes and whole temperature field are to be found with temperature measurements of a few points. In this paper, observers are proposed as solution algorithm for the IHCP. A 1-dimensional heat transfer problem is modeled with modal analysis and state space equations. Position of the heat source is estimated through test heat inputs and the autocorrelation among a few of temperature data. The modified Bass-Gura method is used to design a state observer to estimate the intensity of heat source and the whole temperature field of a 1-dimensional body. To verify the reliability of this estimator, analytic solutions obtained from the proposed method are compared.