This study uses an output feedback disturbance observer-based proportional derivative (PD) controller with variable damping ratios for a class of single-input, single-output nonlinear systems in the presence of unknown disturbances. The proposed sliding mode state and disturbance observer, in which the switching term of the output estimation error is employed to counteract the effect of external disturbance, ensures that the estimation error is finally bounded in a neighborhood and reconstructs simultaneously the system state and unknown disturbance. Herein, the characteristics of the proposed observer are presented in the frequency domain, followed by the corresponding analysis in the time domain. A nonlinear PD controller with a variable damping ratio designed using the estimation state and disturbances should achieve low overshoot and short settling time. Finally, the simulation results demonstrate the validity of the proposed method.