A LQG/LTR(linear quadratic Gaussian/loop transfer recovery) controller with an integrator is designed to control the electro-hydraulic positioning system. Without considering the nonlinearity in the dead-zone, computer simulations are performed and show good performances and tracking abilities with the feedback controller based on the linear system model. However, the performance of the closed loop hydraulic positioning system shows big steady-state error in real system because of the dead-zone. In this paper, the feedback controller with a nonlinear compensator is introduced to overcome the dead-zone phenomenon in hydraulic systems. The inverse dead-zone as a nonlinear compensator is used to cancel out the dead-zone phenomenon. Experimental tests are performed to verify the performance of the controller.