A weighted switching strategy and an inner-loop compensator are presented in this paper to design an observer-based tracker for a decentralized closed-loop cascaded system with a saturating actuator and state constraints. The LQR design methodology for the observer-based tracker is proposed to simplify the complexity of the decentralized control. The realizable sample-data controller with a low-gain property and a high design performance is realized through the digital redesign method. For obtaining a better design performance, evolutionary programming is then presented to tune the parameters of the tracker. Some examples are also presented to demonstrate the effectiveness of the proposed methodology.