In this paper, we present a novel idea to improve the transient performance of the existing Simple Adaptive Control architecture, without requiring high adaptation gains. Improvement in performance is achieved by incorporating the closed loop reference model based on the output feedback to the Simple Adaptive Control architecture. In this proposed scheme, the reference model dynamics is driven by the desired command as well as the error signal between the plant output and the reference model output. It is shown that the modified control architecture improves the system performance without any additional control efforts, which is then validated through simulations of the lateral model dynamics of Micro Air Vehicle.