A new Smith predictor based controller is proposed for systems with integral action and flexible modes under input-output time-delay. The design uses controller parametrization and aims to achieve a set of performance and robustness objectives. Compared to existing Smith predictor based designs, disturbance attenuation property is improved, with respect to periodic disturbances at a known frequency. A two-degree of freedom controller structure is shown to be helpful in shaping the transient response under constant reference inputs. Stability robustness properties of this system are also investigated. Simulation results demonstrate the effectiveness of the proposed controller. © 2013 IEEE.