This paper presents a fault-tolerant control (FTC) scheme for nonlinear systems which are connected in a networked control system. The nonlinear system is first transformed into two subsystems such that the unobservable part is affected by a fault and the observable part is unaffected. An observer is then designed which gives state estimates using a Luenberger observer and also estimates unknown parameter of the system; this helps in fault estimation. The FTC is applied in the presence of sampling due to the presence of a network in the loop. The controller gain is obtained using linear-quadratic regulator technique. The methodology is applied on a mechatronic system and the results show satisfactory performance.