This paper presents an integrated parameter estimator and trajectory tracking controller for a hovercraft. A generic parameter estimator for time-varying systems linear in the parameters is derived and then particularized for the dynamic model of the vehicle at hand. A trajectory tracking controller is proposed for the nonholonomic hovercraft, which renders the tracking error system exponentially stable and its zero dynamics stable. The interconnection of the estimator and the controller is proven to be locally asymptotically stable. Experimental results attesting the performance and robustness of the controller and its interconnection with the estimator are presented.