This article is concerned with the problem of fault detection and isolation (FDI) for discrete-time switched linear systems based on the average dwell-time method. The proposed FDI framework consists of a bank of FDI filters, which are divided into N groups for N subsystems. The FDI filters belonging to one group correspond to the faults for a subsystem, and generate a residual signal to guarantee the fault sensitivity performance for the subsystem, the fault attenuation performance for other subsystems and the disturbance attenuation performance for all subsystems. Different form employing the weighting matrices to restrict the frequency ranges of faults for each subsystem, the finite-frequency H À performance for switched systems is first defined. Sufficient conditions are established by linear matrix inequalities (LMIs), and the filter gains are characterised in terms of the solution of a convex optimisation problem. Two examples are used to demonstrate the effectiveness of the proposed design method.