This article studies the distributed fault estimation (DFE) and fault-tolerant control for continuous-time interconnected systems. Using associated information among subsystems to design the DFE observer can improve the accuracy of fault estimation of the interconnected systems. Based on the static output feedback (SOF), the global outputs of the interconnected systems are used to construct a distributed fault-tolerant control (DFTC). The multiconstrained methods are proposed to enhance the transient performance and ability to suppress the external disturbances simultaneously. The conditions of the presented design methods are expressed in terms of linear matrix inequalities. The simulation results are illustrated to show the feasibility of the presented approaches.