The underlying principle of fault detection via unknown input observer is to make the state estimation error independent of disturbances(or unknown inputs). In this paper, we present a systematic method that can exactly assign the eigenstructure with disturbance suppression and fault isolation capability. A desired eigenstructure for both fault isolation and disturbance suppression is obtained by an optimization method. For the dual purposes, terms for fault isolation and far disturbance suppression are included in the employed objective function for the optimization. The proposed scheme is applied to a simple example to confirm the usefulness of the method.