A Variable Structure Model Reference Adaptive Controller (VS-MRAC) using state Variables is proposed for single input multi output systems. . The structure of the switching functions is designed based on stability requirements, and global exponential stability is proved. Transient behavior is analyzed using sliding mode control and shows perfect model following at a finite time. The effect of input disturbances on stability and transients is investigated and shows preference to the conventional MRAC schemes with integral adaptation law. Sliding surfaces are independent of system parameters and therefore VS-MRAC is insensitive to system parameter variations. Simulation is presented to clear the theoretical results.