Abstract This work presents a procedure to solve nonlinear dynamic data reconciliation (NDDR) problems with simultaneous parameter estimation based on particle swarm optimization (PSO). The performance of the proposed procedure is compared to the performance of a standard Gauss–Newton (GN) scheme in a real industrial problem, as presented previously by Prata et al. [2006. Simultaneous data reconciliation and parameter estimation in bulk polypropylene polymerizations in real time. Macromolecular Symposia 243, 91–103; 2008. In-line monitoring of bulk polypropylene reactors based on data reconciliation procedures. Macromolecular Symposia 271, 26–37]. Both methods are used to solve the NDDR problem in an industrial bulk propylene polymerization process, using real data in real time for the simultaneous estimation of model parameters and process states. A phenomenological model of the real process, based on the detailed mass and energy balances and constituted by a set of algebraic–differential equations, was implemented and used for interpretation of the actual plant behavior in real time. The resulting nonlinear dynamic optimization problem was solved iteratively on a moving time window, in order to capture the current process behavior and allow for dynamic adaptation of model parameters. Obtained results indicate that the proposed PSO procedure can be implemented in real time, allowing for estimation of more reliable process states and model parameters and leading to much more robust and reproducible numerical performance.