This article presents a complete nonlinear controller design for a class of spin-stabilized canard-controlled projectiles. Uniformly ultimate boundedness and tracking are achieved, exploiting a heavily coupled, bounded uncertain and highly nonlinear model of longitudinal and lateral dynamics. In order to estimate unmeasurable states, an observer is proposed for an augmented multiple-input-multiple-output (MIMO) nonlinear system with an adaptive sliding mode term against the disturbances. Under the frame of a backstepping design, an adaptive sliding mode output-feedback dynamic surface control (DSC) approach is derived recursively by virtue of the estimated states. The DSC technique is adopted to overcome the problem of “explosion of complexity” and relieve the stress of the guidance loop. It is proven that all signals of the MIMO closed-loop system, including the observer and controller, are uniformly ultimately bounded, and the tracking errors converge to an arbitrarily small neighborhood of the origin. Simulation results for the observer and controller are provided to illustrate the feasibility and effectiveness of the proposed approach.