The control problem of the rotary double inverted pendulum (double Furuta pendulum) is nontrivial because of underactuation and strong nonlinearities in the associated state‐space model. The system has three degrees of freedom (one actuated and two unactuated joints) while receiving only one control input. In this article, a novel nonlinear optimal (H‐infinity) control approach is developed for the dynamic model of the rotary double inverted pendulum. First, the dynamic model of the double pendulum undergoes approximate linearization with the use of first‐order Taylor series expansion and through the computation of the associated Jacobian matrices. The linearization process takes place at each sampling instance around a temporary operating point which is defined by the present value of the system's state vector and by the last sampled value of the control inputs vector. At a next stage a stabilizing H‐infinity feedback controller is designed. To compute the controller's feedback gains an algebraic Riccati equation has to be solved at each time‐step of the control algorithm. The global stability properties of the control scheme are proven through Lyapunov analysis. To implement state estimation‐based control without the need to measure the entire state vector of the rotary double‐pendulum the H‐infinity Kalman filter is used as a robust state observer. The nonlinear optimal control method achieves fast and accurate tracking of setpoints by all state variables of the rotary double inverted pendulum under moderate variations of the control input.