The paper presents a prediction-identification model based adaptive control method for uncertain systems with time varying parameters in the presence of bounded external disturbances. The method guarantees desired tracking performance for the system s state and input signals. This is achieved by feeding back the state prediction error to the identification model. It is shown that the desired closed-loop properties are obtained with fast adaptation when the error feedback gain is selected proportional to the square root of the adaptation rate. The theoretical findings are confirmed via a simulation example