We propose the use of an active element in conjunction with a passive, reasonably-damped Suspension to make an engine mount capable of satisfyingBoth damping and isolation requirements while avoiding 1) the loss of performance due to detuning of tunable (such as hydraulic) engine mounts and 2) the undesirable on/off switching associated with the decoupler in hydraulic mounts. In the proposed scheme, the damping will be provided by the proper choice of damped elastomeric material and isolation will be achieved by controlling the active element using a novel kalman-estimator based algorithm developed by the authors. To demonstrate the effectiveness of the proposed mounting scheme the distributed parameter models of a typical engine/chassis system was developed. Finite element analysis of the chassis was performed to find its natural frequencies and mode shapes which in turn were used to construct the state space control model. Using the state space model, the vibration isolation algorithm was developed and the performance of The closed loop system was analyzed, indicating that the proposed mounting system is highly effective in reducing the transmission of the engine vibration to the chassis and has enough damping to avoid excessive resonant vibration of the engine.