The integration of internal leakage fault detection and tolerant control for single‐rod hydraulic actuators is present in this paper. Fault detection is a potential technique to provide efficient condition monitoring and/or preventive maintenance, and fault tolerant control is a critical method to improve the safety and reliability of hydraulic servo systems. Based on quadratic Lyapunov functions, a performance‐oriented fault detection method is proposed, which has a simple structure and is prone to implement in practice. The main feature is that, when a prescribed performance index is satisfied (even a slight fault has occurred), there is no fault alarmed; otherwise (i.e., a severe fault has occurred), the fault is detected and then a fault tolerant controller is activated. The proposed tolerant controller, which is based on the parameter adaptive methodology, is also prone to realize, and the learning mechanism is simple since only the internal leakage is considered in parameter adaptation and thus the persistent exciting (PE) condition is easily satisfied. After the activation of the fault tolerant controller, the control performance is gradually recovered. Simulation results on a hydraulic servo system with both abrupt and incipient internal leakage fault demonstrate the effectiveness of the proposed fault detection and tolerant control method.