In this article, a new fault-tolerant control (FTC) method is presented for the Lipschitz nonlinear systems that is capable of handling the actuator faults, sensor faults, unknown external disturbances, and system uncertainties. An augmented system is first constructed by treating the sensor fault as an auxiliary state. An adaptive fault estimation scheme with an H ∞ performance criterion is then developed to simultaneously estimate the actuator and sensor faults. To achieve the tracking control, a nonlinear sliding mode-based state feedback control law is proposed depending on the estimated states and information about fault from the fault estimating unit. The efficacy of the suggested technique is evaluated using a nonlinear model of the multirotor unmanned aerial vehicle (UAV) system with six degrees-of-freedom (DoF) motion. The proposed method is implemented in the inner loop subsystem in order to obtain the attitude and altitude tracking while the outer-loop control is simply a PID controller. Several simulations on the nonlinear system are performed to prove the effectiveness of the proposed method compared with the existing methods.