A hybrid stabilization approach involving both Passivity Observer/passivity Controller and wave variables is addressed to stabilize the teleoperation system with time delay. To guarantee the stability of master or slave side, Passivity Observer and Passivity Controller are applied. But Passivity Observer and Passivity Controller technique cannot deal with communication delay and even small communication delay cause the system to be unstable. To cope with this problem, wave variables are additionally employed to have robustness to arbitrary delays. To show the validity of our proposed approach, several computer simulation results are illustrated.