Position-based proportional derivative (PD) controllers are known to be able to render compliant behaviors to a robot, and they are usually used in conjunction with a friction compensator to improve control performance. Existing methods are effective when applied to actuation systems with mechanical transmissions; however, they cannot be applied to actuation systems that use fluid transmissions owing to the characteristics resulting from fluid parameters. To solve this problem, we propose a stability-guaranteed PD control method that incorporates two observers: one for observing friction and the other is for observing flexible joint effects due to fluid compliance and internal leakage. This allows robots with fluid transmissions to asymptotically converge to the desired position. We verified the proposed approach by conducting simulations and experiments.