In this article, a novel sliding mode control (SMC) strategy for nonlinear Lipschitz systems with multiple and dissimilar time delays in the states and inputs is proposed. Using linear matrix inequality, a modified integral sliding surface scientifically based on which the innovative SMC approach is developed. Lyapunov–Krasovskii's theory is employed to guarantee asymptotic stability of the closed‐loop system, such that states starting from any arbitrary initial conditions reach the sliding surface in a finite time and stay on it for all subsequent time. It is also proved that the practical effects of the actuator's faults are simultaneously attenuated. An online adaptive tuning law is used to estimate and isolate actuators' possible faults reliably. From the implementation point of view, the controller structure is more straightforward than the most existing recent fault‐tolerant control methods. Simulation results performed on practical nonlinear systems (quadruple tank and industrial continuous stirred tank reactor) verified the outstanding merits of the proposed approach. The operational capabilities of the proposed scheme in the presence of actuators' faults and multiple delays in the states and inputs were also demonstrated.