A design method of a T-S fuzzy model based reduced order nonlinear unknown input observer(NUIO) is presented. The fuzzy NUIO is designed based on the parallel distributed compensation(PDC) concept. It consists of a number of the linear UIOs, each of which is designed for each local linear model in the T-S fuzzy model of a class of nonlinear systems. The fuzzy NUIO provides not only the state estimates insensitive to the unknown inputs, for example, disturbances and faults etc., but also the estimates of the unknown inputs. Therefore, It can be employed in the state feedback control and disturbance rejection control of a class of nonlinear systems with unknown disturbances. It also applied to the robust residual generation for the fault detection and isolation systems and to the design of fault tolerant control systems. As an example, the NUIO is applied to an inverted pendulum system to show the state and disturbance estimation performance and to illustrate the fuzzy reduced order NUIO design method.