This paper demonstrates the unique property of Model Reference Adaptive Controlled (MRAC) system. Reference Model is used in the MRAC control structure plays a major role for the transient characteristics of the output response of controlled plant. An inversion based Non-minimum phase (NMP) system always gives unbounded response, MRAC scheme not only stabilize this inverse NMP system, it also force the output trajectory to follow the path of the reference model. Lyapunov stability theory based control logic has been applied to obtain the required control parameters with adjustable gains.