In this paper, a novel parameter identification method for closed-loop two-input two-output (TITO) processes from step-test is proposed. Through sequential step change ofset points, the coupled closed-loop TITO system is decoupled equivalently into four independent single open-loop processes with same input signal acting on the four transfer functions. Consequently, existing identification methods for single-loop process can be extended to TITO systems and the parameters of first-or second-order plus dead-time models for each transfer function can be directly obtained by using the linear regression equations derived for the decoupled identification system. The proposed method is simple for engineering application and robust in the presence of large amounts of measurement noise. Simulation examples are given to show both effectiveness and practicality of the identification method for a wide range of multivariable processes. © 2004 Elsevier Ltd. All rights reserved.