The attention of this article is mainly paid to the finite‐time fault detection (FD) problem for nonlinear delayed system with dynamic quantization and multiple packet dropouts. The probabilistic interval time‐varying delay is addressed, which might fall into two intervals with known probability. The measurement signals are quantized by a dynamic quantizer and then transmitted over communication network, where the multiple packet dropouts might occur. The main objective of the considered problem is to design a finite‐time FD filter such that the FD system is stochastically finite‐time stable (SFTS) with guaranteed performance in the presence of probabilistic interval time‐varying delay, dynamic quantization and multiple packet dropouts. Based on Lyapunov stability theory, sufficient criteria for the presence of the desired finite‐time FD filter are presented. Afterwards, the desired filter gain matrices are given via solving certain linear matrix inequalities (LMIs). Finally, a simulation example is used to show the applicability of the obtained finite‐time FD algorithm.