In this paper, the problems of actuator and sensor fault estimation (FE) and fault-tolerant control (FTC) for uncertain nonlinear systems represented by Takagi-Sugeno (T-S) fuzzy models are investigated. First, a robust fuzzy adaptive sliding mode observer (SMO) is designed to simultaneously estimate system states and both actuator and sensor faults. Then, using the obtained on-line FE information, a static output-feedback fault-tolerant control (SOFFTC) is developed to compensate the fault effects and stabilize the closed-loop system. Moreover, sufficient conditions for the existence of the proposed observer and controller are given in terms of linear matrix inequalities (LMIs). The robustness against uncertainties is treated using the H ∞ optimization technique to attenuate its effect on the estimation error. Finally, the simulation results of nonlinear inverted pendulum with cart system validate the efficiency of the proposed method.