The independent metering control system (IMCS) demonstrates high control precision and energy efficiency for advanced electrohydraulic applications but tends to be faulty. Current model-based fault diagnosis methods face challenges in robustness and adaptability to high uncertainties and high nonlinearities of the IMCS. To enhance the safety and reliability of the IMCS, a novel fault detection and isolation method based on adaptive robust observer (ARO) is proposed. To reduce estimation errors, the designed ARO combines the advantages of the robust filter and parameter adaption, which can overcome the impact of uncertainties and nonlinearities. To detect the fault robustly and sensitively, three types of adaptive thresholds are designed according to the spool displacement residuals. To isolate the fault, a fault space is established, and spatial fault points are calculated. The verification experiments show that the proposed method can well estimate the spool displacement while accurately detecting and isolating faults of the IMCS.