Parameter estimation is an important concept that can be used for health and condition monitoring. Estimation or measurement of physically meaningful parameters and their evaluation against predetermined thresholds allows detection of gradual or abrupt deteriorations in the plant. This early detection of faults enables preventative unscheduled maintenance that is of benefit to industries concerned with reliability and safety. In this paper, a recently proposed state estimation strategy referred to as the Smooth Variable Structure Filter (SVSF) is reviewed and extended to parameter estimation. The SVSF is applied to a novel hydrostatic actuation system referred to as the ElectroHydraulic Actuator (EHA). Condition monitoring of the EHA for preventative unscheduled maintenance would increase its safety in applications pertaining to aerospace and would reduce its operational and maintenance costs.