This paper proposes a novel decentralized output sliding-mode fault-tolerant control (FTC) design for heterogeneous multiagent systems (MASs) with matched disturbances, unmatched nonlinear interactions, and actuator faults. The respective iteration and iteration-free algorithms in the sliding-mode FTC scheme are designed with adaptive upper bounding laws to automatically compensate the matched and unmatched components. Then, a continuous fault-tolerant protocol in the observer-based integral sliding-mode design is developed to guarantee the asymptotic stability of MASs and the ultimate boundedness of the estimation errors. Simulation results validate the efficiency of the proposed FTC algorithm.