This paper presents a new technique for the state estimation and reference tracking of nonlinear dynamic systems over the packet erasure channel, which is an abstract model for transmission via the Internet, WiFi wireless network and ZigBee modules. A new encoder and decoder for real time state estimation of nonlinear dynamic systems at the end of communication link when the measurements are sent through the limited capacity erasure channel, are presented. Then, using the available results from control theory, a controller for reference tracking and hence the stability of the system is also designed. That is, for nonlinear systems, almost sure asymptotic state estimation and reference tracking techniques including an encoder, decoder and a controller are presented. The satisfactory performances of the proposed state estimation and control techniques are illustrated via computer simulations by applying the proposed techniques on the unicycle model, which represents the dynamics of autonomous vehicles. (C) 2020 European Control Association. Published by Elsevier Ltd. All rights reserved.