The main objective of granulation processes is to produce granules with specific physical properties based on the end usage. The numerous disturbances associated with most granulation processes causes significant variations in first pass yield. Development and application of a yield based on-line control strategy is essential to maintaining consistent product quality. This paper highlights the problems associated with, and the need for, the development and online implementation of a yield based control scheme that controls appropriate physical properties of the granules exiting the granulator. A multi-level control scheme using process models of varying complexity is proposed. This paper discusses some of the results from online implementation of a section of this control scheme on a continuous granulation unit.