We present an overview of the optical setup and control algorithms for the multi-conjugate adaptive optics (MCAO) system of the 70cm German Vacuum Tower Telescope (VTT), Observatorio del Teide, Tenerife. The system is designed to remove the strong differential tip/tilt of the present AO system across a field of 30 arcseconds at visible wavelengths. It will consist of two Shack-Hartmann wavefront sensors (WFS) and two deformable mirrors (DM) plus a separate Tip/Tilt mirror. Both wavefront sensors will be situated in the pupil plane of the telescope. One determines the high order wavefront aberrations for the center of the field of view (FOV), the other measures only low order wavefront aberrations, but covers a large FOV in each subaperture. A 35 actuator bimorph mirror and a 37 actuator membrane mirror will correct the ground layer and the tropopause, respectively. For wavefront reconstruction, the mirror eigenmodes will be used. The system will have first light in the first quarter of 2003. Scientific operation is expected to start in April 2003 or July 2003.© (2003) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.