A nonlinear observer is considered for a class of continuous nonlinear
descriptor systems subject to unknown inputs and faults. This class i
s partly characterized by globally Lipschitz nonlinearities, and a mem
ber system may be singular and possibly non-causal. The observer struc
ture chosen makes it useful for both state estimation for feedback con
trols and residual generation for fault detection. Results on the exis
tence of solutions are given and some useful bounds are derived which
are important in the observer design, which is based on a transformed
system and on the solution of a Riccati equation. The existence, conve
rgence properties and robustness of the observer are investigated by t
he use of a quadratic Lyapunov function. Conditions are given for a bo
und to hold on the norm of the transfer function relating the residual
error to the disturbance (linear case). A design algorithm is given a
nd applied to the estimation of the states of a flexible joint robot.