This paper considers the problem of robust non-fragile observer-based dynamic event-triggered sliding mode control (SMC) for a class of discrete-time Lipschitz nonlinear networked control systems subject to sensor saturation and dead-zone input nonlinearity. First, an improved dynamic event-triggered scheme (DETS) in consideration of sensor saturation is proposed to reduce the number of data transmission. Next, a non-fragile observer is designed to estimate the system state, which facilitates the construction of the discrete sliding surface. By using a reformulated Lipschitz property, the error dynamics and sliding mode dynamics are modeled as a unified linear parameter varying (LPV) networked system with time-varying delays. Then, based on this model, sufficient conditions are established to guarantee the resulting closed-loop system to be asymptotically stable with a given disturbance attenuation level. Furthermore, an observer-based event-triggered SMC law is designed to drive the trajectories of the observer system onto a region near equilibrium point in a finite time in the presence of dead-zone input nonlinearity. Finally, two practical examples are employed to demonstrate the effectiveness of the proposed method.