In this paper, a new adaptive fuzzy backstepping control approach is developed for a class of nonlinear systems with unknown time-delay and unmeasured states. Using fuzzy logic systems to approximate the unknown nonlinear functions, a fuzzy state observer is designed for estimating the unmeasured states. On the basis of the state observer and applying the backstepping technique, an adaptive fuzzy observer control approach is developed. The main features of the proposed adaptive fuzzy control approach not only guarantees that all the signals of the closed-loop system are semiglobally uniformly ultimately bounded, but also contain less adaptation parameters to be updated on-line. Finally, simulation results are provided to show the effectiveness of the proposed approach.