A nonlinear adaptive excitation controller is proposed to enhance the transient stability and voltage regulation of synchronous generators with unknown power angle and mechanical power input. The proposed method is based on a standard third-order model of a synchronous generator which requires only information about the physical available measurements of relative angular speed, active electric power, infinite bus and generator terminal voltages. The operating conditions are computed online using the above physical available measurements, the terminal voltage reference value and the estimate of the mechanical power input. The proposed design is therefore capable of providing satisfactory voltage in the presence of unknown variations of the power system operating conditions. Using the concept of sliding mode equivalent control techniques, a robust decentralized adaptive controller which insures the exponential convergence of the outputs to the desired ones, is obtained. Real-time experimental results are reported, comparing the performance of the proposed adaptive nonlinear control scheme to one of the conventional AVR/PSS controller. The high simplicity of the overall adaptive control scheme and its robustness with respect to line impedance variation including critical unbalanced operating condition and temporary turbine fault, constitute the main positive features of the proposed approach.