This paper presents an active fault-tolerant control for linear system in case of actuator and sensor faults where these minor faults lead to degraded performance of the system. Three steps are proposed to achieve fault tolerant control based on simplified analytical redundancy. Firstly, a bank of linear observer is proposed to estimate the actuator and sensor faults by modeling a descriptor LTI system using the SVD technique. Secondly, the estimated faults are used to design a fault decision scheme to detect the faults correctly. Thirdly, a reconfigurable fault-tolerant control scheme is designed by using the estimated faults to compensate the fault effects on controller performance. Simulation on the three tank system is given to illustrate the performance of the proposed method.