The installed wind energy generation capacity has been increasing dramatically all over the world. However, most wind turbines are installed in hostile environments, where regular operation needs to be ensured by effective fault tolerant control methods. An adaptive observer-based fault tolerant control scheme is proposed in this article to address the sensor and actuator faults that usually occur on the core subsystems of wind turbines. The fast adaptive fault estimation (FAFE) algorithm is adopted in the adaptive observers to accurately and rapidly located the faults. Based on the states and faults estimated by the adaptive observers, the state feedback fault tolerant controllers are designed to stabilize the system and compensate for the faults. The gain matrices of the controllers are calculated by the pole placement method. Simulation results illustrate that the proposed fault tolerant control scheme with the FAFE algorithm stabilizes the faulty system effectively and performs better than the baseline on the benchmark model of wind turbines.