Fault diagnosis is an important aspect of process operations. There is an abundance of literature on fault diagnosis for process industries. So far most of the work is focussed on fault detection, isolation, and identification. The use of results from fault diagnosis often performed by the operator through table-looking strategies, are often incomplete, time-consuming, and prone to errors. In this study, a dynamic optimization based control redesign for fault accommodation is proposed. The whole fault accommodation system includes a dynamic process model, fault detection and isolation, fault identification and state estimation, and dynamic optimization block for control redesign. This method simultaneously achieves the economic optimality and operation safety due to its capability to handle both hard equipment constraints and operational constraints.