In this paper, a novel distributed agent-based dynamical sys-tem estimation strategy is proposed. Each agent has a local observation space and is interested in a specific set of system state elements. The agents have the ability of two-way communication with its neighbors (i.e., agents who share at least one state element). At a particular time instant, each agent predicts its state and makes intermediate correction based on its local measurements. Information about the corrected state elements are then exchanged among the neighboring agents.