SummaryThe problem of robust stabilization for a class of nonlinear large‐scale systems with the energy constraints and time‐varying actuator faults is addressed in this article. In the considered system, the stabilization criteria is achieved via a sensor‐network‐based distributed fault‐tolerant controller. Moreover to limit the consumption of energy by the sensors, the measurement size reduction technique and communication rate reduction approach are implemented such that the resulting closed‐loop system is stable within a predefined extended passive performance index level. In particular, the sensor signal quantization technique is used to reduce the frequency and size of the transmitted data packet in the communication sequence. Based on the switched system theory and Lyapunov approach, a new set of sufficient conditions is obtained in the form of linear matrix inequality constraints to ensure the exponential stabilization of the considered system. The developed fault‐tolerant resilient control gains are designed by resorting to the cone complementarity linearization algorithm. Moreover, a nonisothermal continuous stirred‐tank reactor with interconnection is considered as an example to demonstrate the effectiveness of the proposed design technique.