Due to its inherent safety feature, the modular high temperature gas-cooled reactor (MHTGR) is considered as one of the best candidates for SMR-based nuclear power plants. Since its dynamics presents high nonlinearity and parameter uncertainty, it is necessary to develop adaptive power-level control, which is beneficial to safe, stable, and efficient operation of MHTGR and is easy to be implemented. In this paper, based on the physically-based control design approach, an adaptive output feedback power-level control is proposed for MHTGRs.