With the rapid development of computer science and information and communication technology (ICT), increasingly intelligent, and complex systems have been applied to industries as well as human life. Fault-tolerant control (FTC) has, therefore, become one of the most important topics attracting attention from both engineers and researchers to maintain system performances when faults occur. The ultimate goal of this study was to develop a sensor fault-tolerant control (SFTC) to enhance the robust position tracking control of a class of electro-hydraulic actuators called mini motion packages (MMPs), which are widely used for applications requiring large force-displacement ratios. First, a mathematical model of the MMP system is presented, which is then applied in the position control process of the MMP system. Here, a well-known proportional, integrated and derivative (PID) control algorithm is employed to ensure the positional response to the reference position. Second, an unknown input observer (UIO) is designed to estimate the state vector and sensor faults using a linear matrix inequality (LMI) optimization algorithm. Then an SFTC is used to deal with sensor faults of the MMP system. The SFTC is formed of the fault detection and the fault compensation with the goal of determining the location, time of occurrence, and magnitude of the faults in the fault signal compensation process. Finally, numerical simulations were run to demonstrate the superior performance of the proposed approach compared to traditional tracking control.