A system and method of modeling, prediction, optimization and controlling an embedded alarm control having a plurality of independently controlled, manipulated variables, at least one controlled variables and one or more disturbance variables. The method includes determining simultaneously a set number of dynamic moves of the manipulated variables along with steady state values of the manipulated and controlled variables with steady state constraints relating to the manipulated and controlled variables as well as dynamic constraints relating to the manipulated and controlled variables including relating to the disturbance variables. Embedding alarm controls in the simultaneous dynamic control and steady state optimization with varying type of alarming situations and aiding operator in recovery actions. Performing a receding horizon form of control wherein the optimization and control is performed at successive time interval by monitoring and feedback of process responses resulting from the control actions applied at previous time intervals.