SummaryWith the aid of a proportional integral framework, the presented article focuses on the problems of finite‐time boundedness and fault estimation for Takagi–Sugeno fuzzy singular systems subject to time delays, faults and external disturbances. To commence, we conjure up a fuzzy‐dependent intermediate variable and from thereon, a proportional integral‐based fuzzy intermediate estimator is constructed. Moreover, the constructed estimator precisely facilitates for estimating the fault signals and system states in simultaneously. Besides this, the integral term in the proportional integral estimator offers greater design flexibility and higher resilience. Secondly, an intermediate estimator‐based fault‐tolerant control is devised by availing the information from the proportional integral‐based fuzzy intermediate estimator, which aids in effectively compensating the faults arising in the system. Subsequently, by setting up an appropriate Lyapunov–Krasovskii functional, the set of adequate requirements asserting the finite‐time boundedness with the endorsed mixed and passivity performance index is established in terms of linear matrix inequalities. After that, an explicit framework for the requisite gain matrices can be found forth basing on the formed linear matrix inequality criteria. Ultimately, simulation findings are supplied to evaluate the utility and applicability of the theoretical insights.