In this paper a method to design robust adaptive sliding mode observers (ASMO) for a class of nonlinear time- delay systems with uncertainties, is proposed. The objective is to achieve insensitivity and robustness of the proposed sliding mode observer to matched disturbances. A novel systematic design method is synthesized to solve matching conditions and compute observer stabilizing gains. The Lyapunov-Krasovskii theorem is employed to prove the ultimate stability with arbitrary boundedness radius of the estimation error of the proposed filter. Finally, the ability of ASMO for fault reconstruction is studied.\ud \u
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