This paper investigates the observer-based adaptive fuzzy quantized control problem for a class of fractional-order nonlinear time-delay systems with unknown control gains based on a modified fractional-order dynamic surface control (FODSC) technique and an indirect Lyapunov method. First, a fractional-order, high-gain state observer is constructed to estimate unavailable state information. Furthermore, the Nussbaum gain technique and a fractional-order filter are adopted to cope with the problem of unknown control gains and to reduce the computational complexity of the conventional recursive procedure, respectively. Moreover, through integration with the compensation mechanism and estimation model, the adaptive fuzzy quantized controllers and adaptive laws are designed to ensure that all the signals of the closed-loop system are bounded. In the end, the proposed controller is applied to a numerical example and a single-machine-infinite bus (SMIB) power system; the simulation results show the validity, superiority, and application potential of the developed control strategy.