This paper addresses the design problem of fault-tolerant H ∞ controller for linear systems with state quantization. By combining linear matrix inequality technique and indirect adaptive method, a new method is proposed to design a fault-tolerant controller against actuator faults via quantized state feedback. The controller gains are updating according to the online estimation of eventual faults, which are dependent on the quantized state signals. Meanwhile, the proposed designs conditions with variable gains can be proved to be less conservative than those of the traditional controller with fixed gains. A numerical example is presented to illustrate the effectiveness of the proposed method. Copyright © 2012 John Wiley & Sons, Ltd.