This paper investigates an algorithm for robust fault diagnosis in robot manipulators. The TOSM (Third Order Sliding Mode observer) provides both theoretically exact observation and unknown fault identification without filtration. The EOI (Equivalent Output Injections) of the TOSM observers can be used as residuals for the problem of fault diagnosis and to identify the unknown faults. The obtained fault information can be used for fault detection, isolation as well as fault accommodation to the self-correcting failure system. The computer simulation results for a PUMA 560 robot are shown to verify the effectiveness of the proposed strategy.