Model-based fault diagnosis serves as a powerful technique for addressing fault detection and isolation issues in control systems. However, diagnosing faults in closed-loop control systems is more challenging due to their inherent robustness. This paper aims to detect and isolate actuator and sensor faults in the cascade electro-hydraulic control system of a turbofan engine. Based on the fault characteristics, we design a robust unknown perturbation decoupling residual generator and an optimal fault observer specifically for the inner and outer control loops to detect potential faults. To locate the faults, we analyze the steady-state propagation laws of actuator and sensor faults within the loops using the final value theorem. Based on this, we establish the minimal-dimensional fault influence distribution matrix specific to the cascade turbofan engine control system. Subsequently, we construct the normalized residual vectors and monitor its vector angles against each row of the fault influence distribution matrix to isolate faults. Experiments conducted on an electro-hydraulic test bench demonstrate that our proposed method can accurately locate four typical faults of actuators and sensors within the cascade electro-hydraulic control system. This study enriches the existing fault isolation methods for complex dynamic systems and lays the foundation for guiding component repair and maintenance.