In this paper, an adaptive output feedback compensation control scheme is proposed for a class of non-linear systems with unknown sensor failures. For estimating the unmeasured states, a novel switching type adaptive observer is constructed, in which the observer gains are tuned in a switching manner. To compensate for the failure effects on transient performance, a new error signal which contains an adaptive compensation coefficient is introduced into backstepping procedure. It is shown that the proposed controller can guarantee the closed-loop system is globally uniformly ultimately bounded, and system output converges to an adjustable neighborhood of the origin. Simulation results are presented to illustrate the effectiveness of the proposed scheme. (C) 2018 Elsevier Ltd. All rights reserved.