This study is concerned with the adaptive neural network (NN) observer design problem for continuous-time switched systems via quantized output signals. A novel NN observer is presented in which the adaptive laws are constructed using quantized measurements. Then, persistent dwell time (PDT) switching is considered in the observer design to describe fast and slow switching in a unified framework. Accurate estimations of state and actuator efficiency factor can be obtained by the proposed observer technique despite actuator degradation. Finally, a simulation example is provided to illustrate the effectiveness of the developed NN observer design approach.