This paper presents a fault diagnosis and fault-tolerant control algorithm, which can be used for a class of multi-input multi-output (MIMO) nonlinear state systems. First, a state estimator is proposed, which is able to detect fault occurrence, by using a residual signal. Second, when the state is at an abnormal condition, the fault-tolerant control will be triggered to minimize the impact of the fault occurrence. This fault-tolerant control is designed by using a robust controller (original controller), and an on-line approximator to capture a nonlinear function that indicates the fault occurrence. The detailed analysis is given for the proposed fault accommodation control.