A new control algorithm is developed for reducing the response of smart base isolated buildings with variable friction semiactive control systems in near-fault earthquakes. The central idea of the control algorithm is to design a H∞ controller for the structural system and use this controller to determine the optimum control force in the semiactive device. The H∞ controller is designed using appropriate input and output weighting filters that have been developed for optimal performance in reducing near-fault earthquake responses. A novel semiactive variable friction device is also developed and with the H∞ controller shown to be effective in achieving response reductions in smart base isolated buildings in near-fault earthquakes. The new variable friction device developed consists of four friction elements and four restoring spring elements arranged in a rhombus configuration with each arm consisting of a friction–stiffness pair. The level of friction force can be adjusted by varying the angle of the arms of the device leading to smooth variation of friction force in the device. Experimental results are presented to verify the proposed analytical model of the device. The H∞ algorithm is implemented analytically on a five storey smart base isolated building with linear elastomeric isolation bearings and variable friction system located at the isolation level. The H∞ controller along with the weighting filters leads to the smooth variation of friction force, thus eliminating the disadvantages associated with rapid switching. Several recent near-fault earthquakes are considered in this study. The robustness of the H∞ controller is shown by considering a stiffness uncertainty of ±10%. Copyright © 2006 John Wiley & Sons, Ltd.