The problem of simultaneous fault detection, isolation and tracking (SFDIT) control design for linear systems subject to both bounded energy and bounded peak disturbances is considered in this work. A dynamic observer is proposed and implemented by using the H/H-/L-1 formulation of the SFDIT problem. A single dynamic observer module is designed that generates the residuals as well as the control signals. The objective of the SFDIT module is to ensure that simultaneously the effects of disturbances and control signals on the residual signals are minimised (in order to accomplish the fault detection goal) subject to the constraint that the transfer matrix from the faults to the residuals is equal to a pre-assigned diagonal transfer matrix (in order to accomplish the fault isolation goal), while the effects of disturbances, reference inputs and faults on the specified control outputs are minimised (in order to accomplish the fault-tolerant and tracking control goals). A set of linear matrix inequality (LMI) feasibility conditions are derived to ensure solvability of the problem. In order to illustrate and demonstrate the effectiveness of our proposed design methodology, the developed and proposed schemes are applied to an autonomous unmanned underwater vehicle (AUV).