Abstract Modern control systems’ dependability, safety and efficiency have all been improved by studying fault-tolerant control systems (FTCS). FTCS techniques can typically be active or passive controls. The fault detection and diagnosis (FDD) method is used in this study’s active control branch to identify probable faults that could develop in the speed Hall sensors of brushless DC motors (BLDC). FDD methodologies can be categorised into two types, depending on the available data and the process involved: model-based methods and data-based methods. The proposed approach in this study explores the implementation of the Luenberger observer methodology as part of the model-based approach. The chosen methodology was practically implemented and subjected to experimental evaluation. The proposed observer relies on the residual signal, which displays the difference between the plant’s observed and estimated speed signals and serves as a failure alert for the entire system. Given the increasing demand for BLDC motors in various industrial control applications, including medical fields, automation and robotics, this particular motor was selected as a benchmark to thoroughly evaluate and validate the proposed method. The primary contribution of this paper lies in the real-time application of model-based sensor fault detection methods to BLDC motors. The efficiency of the suggested method is showcased through extensive MATLAB simulations, where the obtained results confirm the successful detection of faults with a high level of responsiveness. As a result, the project was successfully implemented in real-time, and the experimental results exhibited a close correlation with the simulated outcomes. This consistency between simulation and practical implementation validates the accuracy and reliability of the proposed methodology for detecting faults in the BLDC motor speed sensor. The results underscore the heightened reliability and safety attained by promptly and accurately detecting sensor faults during the operation of the motor.