SUMMARYThis paper considers the problems of the state estimation and the simultaneous unknown input and measurement noise reconstruction when the observer matching condition is not satisfied. A new augmented system is constructed by introducing a new augmented state vector. An auxiliary output vector is proposed to deal with the observer matching condition issues, and a high‐order sliding mode observer is considered to get the exact estimates of both the auxiliary outputs and their derivatives in a finite time. A reduced‐order observer is developed to asymptotically estimate the system states, and a kind of reconstruction method of the new system's unknown inputs is proposed to reach the goal of reconstructing the original system's unknown input and measurement noise. Finally, a numerical simulation example is given to illustrate the effectiveness of the proposed methods. Copyright © 2012 John Wiley & Sons, Ltd.