A new and fast recursive, exponentially weighted PLS algorithm which provides greatly improved parameter estimates in most process situations is presented. The potential of this algorithm is illustrated with two process examples: (i) adaptive control of a two by two simulated multivariable continuous stirred tank reactor; and (ii) updating of a prediction model for an industrial flotation circuit. The performance of the recursive PLS algorithm is shown to be much better than that of the recursive least squares algorithm. The main advantage of the recursive PLS algorithm is that it does not suffer from the problems associated with correlated variables and short data windows. During adaptive control, it provided satisfactory control when the recursive least squares algorithm experienced difficulties (i.e., "blew" up) due to the ill-conditioned covariance matrix, \((X^TX)\). For the industrial soft sensor application, the new algorithm provided much improved estimates of all ten response variables.