This paper focuses on estimation and cancellation of unknown sinusoidal disturbances in a known LTI system with the presence of a known output delay. Parametrizing the disturbance and representing the delay as a transport PDE, the problem is converted to an adaptive control problem for ODE-PDE cascade. An existing state observer is used to estimate the ODE system states. The exponential stability of the equilibrium of the closed-loop and error system is proved. The perfect estimation of the disturbance and state is shown. Moreover, the convergence of the state to zero as t -> infinity is achieved in the closed loop system. The effectiveness of the controller is demonstrated in a numerical simulation. (C) 2018 Elsevier Ltd. All rights reserved.