The robust and reliable H-infinity output feedback controller design problem is investigated for uncertain linear systems with actuator failures within a prespecified subset of actuators. The uncertainty considered here is time-varying norm-bounded parameter uncertainty in the state matrix. The output of a faulty actuator is assumed to be any arbitrary energy-bounded signal. An observer-based output feedback controller design is presented which stabilizes the plant and guarantees an H-infinity-norm bound on attenuation of augmented disturbances, for all admissible uncertainties as well as actuator failures. The construction of the observer-based output feedback control law requires the positive-definite solutions of two algebraic Riccati equations. The result can be regarded as an extension of existing results on robust H-infinity control and reliable H-infinity control of uncertain linear systems.