Introduction. Fault diagnosis, and fault tolerant control issues are becoming very important to ensure a good supervision of systems and guarantee the safety of human operators and equipments even if system complexity increases. Problem. In fact, the presence of faults in actuators, sensors and processes can lead to system performance degradation, system breakdown, economic loss, and even disastrous situations. Furthermore, Actuator saturation or control input saturation is probably the most usual nonlinearity encountered in control engineering because of the physical impossibility of applying unlimited control signals and/or safety constraints. Purpose. This article is dedicated to the problem of fault tolerant control for constrained nonlinear systems described by a Takagi-Sugeno model. One of the interests of this type of models is the possibility of extend some tools and methods from linear system case to the nonlinear one. The novelty of the work consists in developing a fault tolerant control algorithm for a nonlinear Permanent Magnet Synchronous Machine model using an observer based state-feedback control technique in order to enhance fault and state estimation despite actuator saturation and system disturbances. Methods. Indeed a sensor fault detection observer based residual generator is synthesized with a guaranteed L2 performance to attenuate the external disturbances effect from one side and to maximize the residual sensitivity to faults from the other side. Based on Lyapunov function, design conditions are formulated in terms of Linear Matrix Inequalities to ensure stability of the global system. Practical value. A detailed study concerning nonlinear permanent magnet synchronous machine model, which is consolidated by simulation results, is conducted to show the used algorithm’s effectiveness guarantying fault estimation and reconfiguration of the control law to maintain stable performance even in the presence of actuator faults, external perturbation and the phenomenon of actuator saturation.