In this paper, a new active fault tolerant control (AFTC) methodology is proposed based on a state estimation scheme for fault detection and identification (FDI) to deal with the potential problems due to possible fault scenarios. A bank of adaptive unscented Kalman filters (AUKFs) is used as a core of FDI module. The AUKF approach alleviates the inflexibility of the conventional UKF due to constant covariance set up, leading to probable divergence. A fuzzy-based decision making (FDM) algorithm is introduced to diagnose sensor and/or actuator faults. The proposed FDI approach is utilized to recursively correct the measurement vector and the model used for both state estimation and output prediction in a model predictive control (MPC) formulation. Robustness of the proposed FTC system, H-infinity optimal robust controller and MPC are combined via a fuzzy switch that is used for switching between MPC and robust controller such that FTC system is able to maintain the offset free behavior in the face of abrupt changes in model parameters and unmeasured disturbances. This methodology is applied on benchmark three-tank system; the proposed FTC approach facilitates recovery of the closed loop performance after the faults have been isolated leading to an offset free behavior in the presence of sensor/actuator faults that can be either abrupt or drift change in biases. Analysis of the simulation results reveals that the proposed approach provides an effective method for treating faults (biases/drifts in sensors/actuators, changes in model parameters and unmeasured disturbances) under the unified framework of robust fault tolerant control. (C) 2012 Elsevier Ltd. All rights reserved.