This paper investigates the fault estimation and fault tolerant control (FTC) for discrete time nonlinear system with multiple bounded state delay using the Takagi-Sugeno (T-S) fuzzy model. First, a fuzzy-fault estimation observer (FFEO) design is proposed to achieve fault estimation of T-S models with actuator faults. Based on the information of online fault estimation, a state feedback-fault tolerant controller (SFFTC) using the estimate of state is designed to compensate the effect of faults by stabilizing the closed-loop system. The disturbance rejection attenuation is constrained to a given level using a Hœ-performance index. Sufficient conditions are established for the existence of the desired (FFEO) and (SFFTC) in terms of linear-matrix inequalities (LMIs). An example is given to illustrate the effectiveness and applicability of the proposed method.