The discovery of fractional Chern insulators (FCIs) in twisted bilayer MoTe_{2} has sparked significant interest in fractional topological matter without external magnetic fields. Unlike the flat dispersion of Landau levels, moiré electronic states are influenced by lattice effects within a nanometer-scale superlattice. This Letter examines the impact of these lattice effects on the topological phases in twisted bilayer MoTe_{2}, uncovering a family of FCIs with Abelian anyonic quasiparticles. Using a composite fermion approach, we identify a sequence of FCIs with fractional Hall conductivities σ_{xy}=[C/(2C+1)](e^{2}/h) linked to partial filling ν_{h} of holes of the topmost moiré valence band. These states emerge from incompressible composite fermion bands of Chern number C within a complex Hofstadter spectrum. This approach explains FCIs with Hall conductivities σ_{xy}=(2/3)e^{2}/h and σ_{xy}=(3/5)e^{2}/h at fractional fillings ν_{h}=2/3 and ν_{h}=3/5 observed in experiments, and uncovers other fractal FCI states. The Hofstadter spectrum reveals new phenomena, distinct from Landau levels, including a higher-order Van Hove singularity (HOVHS) at half-filling, leading to novel quantum phase transitions. This Letter offers a comprehensive framework for understanding FCIs in transition metal dichalcogenide moiré systems and highlights mechanisms for topological quantum criticality.
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