Because of its strong inherent safety features and high outlet temperature, the modular high temperature gas-cooled nuclear reactor (MHTGR) is already seen as the central part of the next generation of nuclear plants. Such power plants are being considered for industrial applications with a wide range of power levels, and thus power-level control is an important technique for their efficient and stable operation. Stimulated by the high regulation performance provided by nonlinear controllers, a novel dynamic output-feedback nonlinear power-level regulator is developed in this paper based on the technique of iterative damping assignment (IDA). This control strategy can provide the L 2 disturbance attenuation performance under modeling uncertainty or exterior disturbance, and can also guarantee the globally asymptotic closed-loop stability without uncertainty and disturbance. This newly built control strategy is then applied to the power-level regulation of the HTR-PM plant, and numerical simulation results show both the feasibility and high performance of this newly-built control strategy. Furthermore, the relationship between the values of the parameters and the performance of this controller is not only illustrated numerically but also analyzed theoretically.