A direct adaptive approach is developed for control of a class of multi-input multi-output (MIMO) nonlinear systems in the presence of uncertain failures of redundant actuators. An adaptive failure compensation controller is designed which is capable of accommodating uncertainties in actuator failure time instants, values and patterns. A realistic situation is studied with fixed grouping of actuators and proportional actuation within actuator groups. The adaptive control system is analyzed, to show its desired stability and asymptotic tracking properties in the presence of actuator failure uncertainties. As an application, such an adaptive controller is used for actuator failure compensation of a twin otter aircraft longitudinal model, with design conditions verified and control structure and adaptive laws developed for a nonlinear aircraft dynamic model. The effectiveness of adaptive failure compensation is demonstrated by simulation results. (C) 2007 Elsevier Ltd. All rights reserved.