The invention relates to the technical field of satellite fault diagnosis and fault-tolerant control, and proposes a fault diagnosis method, which has very good robustness to external interference, isfree of influence of external interference in a fault diagnosis process, prevents generation of misinformation and missing report, and can effectively estimate fault severity. According to the satellite fault diagnosis and fault-tolerant control method based on a self-adaptive observer, first a satellite kinematics and dynamics model under an actuator fault and external interference influence isestablished to analyze influence of fault effective factors on a system; secondly, an observer is designed for a satellite fault system, a residual error evaluation function is established based on observer output and system actual output, an evaluation threshold value is obtained, and the purpose of fault detection is achieved; then, when occurrence of a fault is detected, a self-adaptive observer is designed to complete a fault diagnosis task; and finally, based on an estimated value of the fault, a finite time self-adaptive fault-tolerant controller is designed. The satellite fault diagnosis and fault-tolerant control method based on a self-adaptive observer is mainly applied to fault diagnosis and fault-tolerant control occasions.