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Control of a distributed power system (DPS) is a challenging task and requires unique control formulation as they arise in complex engineering problems. Since DPSs are gaining widespread importance, development of robust control strategies, which encompasses the nonlinear behavior and spatial spread of such networks, commands utmost gravity. Due to the spatial spread of such networks, state observer design based on local state variables plays a role of paramount importance. In this paper, the authors have outlined the design of a non-linear state observer which will aid a distributed control architecture for a single-input multi-output high frequency distributed power system (HFDPS) which incorporates need-based asynchronous power transfer. An adaptive control strategy for independent control of the need-based asynchronous HFDPS will be implemented based on the estimated state variables of the observer. Hence global control objectives are addressed using local sensing and a robust estimator design. Experimental results are portrayed in order to verify the stability and robust dynamic performance of the observer so designed. The nonlinear state observer was designed in the framework of exact formulation based on nonlinear map. Hence the observer encompasses the impact of switching frequency and other fast scale dynamics without any bandwidth limitation.