In this paper, the problem of controlling systems with failures and faults is introduced, and an overview of recent work on direct adaptive control for compensation of uncertain actuator failures is presented. Actuator failures may be characterized by some unknown system inputs being stuck at some unknown (fixed or varying) values at unknown time instants, that cannot be influenced by the control signals. The key task of adaptive compensation is to design the control signals in such a manner that the remaining actuators can automatically and seamlessly take over for the failed ones, and achieve desired stability and asymptotic tracking. A certain degree of redundancy is necessary to accomplish failure compensation. The objective of adaptive control design is to effectively use the available actuation redundancy to handle failures without the knowledge of the failure patterns, parameters, and time of occurrence. This is a challenging problem because failures introduce large uncertainties in the dynamic structure of the system, in addition to parametric uncertainties and unknown disturbances. The paper addresses some theoretical issues in adaptive actuator failure compensation: actuator failure modeling, redundant actuation requirements, plant-model matching, error system dynamics, adaptation laws, and stability, tracking, and performance analysis. Adaptive control designs can be shown to effectively handle uncertain actuator failures without explicit failure detection. Some open technical challenges and research problems in this important research area are discussed.