This paper considers the problem of fault estimation and accommodation for a class of switched systems with time-varying delay. An adaptive fault estimation algorithm is proposed to estimate the fault, moreover, constant or time-varying fault can be estimated. Meanwhile, a delay-dependent criteria is obtained with the purpose of reducing the conservatism of the fault estimation algorithm design. On the basis of fault estimation, an observerbased fault tolerant controller is designed to guarantee the stability of the closed-loop system. Additionally, simulation results are presented to illustrate the efficiency of the proposed results.