This paper presents a fault detection asnd isolation algorithm for highly reliable gantry crane system. The algorithm is constructed by multiple PI observer technique, and the magnitude of actuator fault can be estimated by using integrated estimated output error. Also, the complex actuator and /or sensor fault can be detected and isolated by monitoring the integrated error and the estimated state error. Considering the actuator and/or the sensor fault, we verify that these fault can be detected and isolated through simulation. Lastly, we show a simple reliable control method by using the detected fault signal and an added observer.