In this paper, the application of linear quadratic Gaussian (LQG) control for a buoy‐type point absorber of a wave energy converter (PA‐WEC) system is investigated. The proposed wave energy conversion is considered as a two‐body system, which is taut‐anchored to the sea floor using three cables. The main goal of this study is to extract the maximum available power from the ocean wave. This is accomplished via determining the optimal value of the force exerted on the power take‐off (PTO) system taking in account the physical constraints on the position and velocity. First, the reduced nonlinear dynamical model of the WEC system is obtained. The nonlinearity in the mooring force is replaced by a linear law to yield the state space linear model of the system. Then, the standard Kalman filter technique is employed to estimate the full states of the system. Based on the LQG control approach, the optimal PTO force is computed at which the maximum output power can be easily harvested. The computational burden is minimized to a great extent by computing the optimal state feedback gains and the Kalman state space model offline. The feasibility of the proposed control approach in extracting the optimal power of the ocean wave is validated via the simulation example even under different values of the mooring constant and without violating the system limitation. © 2015 Institute of Electrical Engineers of Japan. Published by John Wiley & Sons, Inc.