The intensified heat exchanger/reactor systems became very popular and interesting in the process intensification field. They combine both heat transfer and chemical reactions in one hybrid unit. Nevertheless, the supervision and the diagnosis of these systems is highly demanded in order to maintain their performance and ensure their safety. In this paper, a fault tolerant control system, based on a bank of adaptive observers with a backstepping-based control law, is employed to a new intensified heat exchanger/reactor, in order to detect, isolate and recover all possible dynamic faults.