This paper proposes an observer-based method for adaptive nonlinear guidance. Previously, adaptive nonlinear guidance law is proposed considering target maneuver and control loop dynamics. However, several information of this guidance law is not available, and therefore needs to be estimated for more practical application. Accordingly, considering the unavailable information as bounded time-varying uncertainties, an integrated guidance and control model is re-formulated in normal form with respect to available states including target uncertainties and control loop dynamics. Then, a nonlinear observer is designed based on the integrated guidance and control model. Finally, using the estimates for states and uncertainties, an observer-based adaptive guidance law is proposed to guarantee the desired interception performance against maneuvering target. The proposed approach can be effectively used against target maneuver and the limited performance of control loop. The stability analyses and simulations of the proposed observer and guidance law are included to demonstrate the practical application of our scheme.