Vehicle Steer-by-Wire (SbW) system is an electronically controlled steering system with no mechanical linkage and is able to improve vehicle safety through better steering capability. The SbW system failure, however, may lead to performance degradation or even result in instability. This paper proposes a fault-tolerant control scheme for the SbW systems based on model predictive control (MPC) and fault detection and isolation (FDI). In this scheme, the MPC controller attempts to restore the original functionality of the SbW systems by using the output of FDI to update the fault information while the FDI module uses a two-stage Kalman filter algorithm to provide simultaneous control parameter and state estimation to modify the internal model in MPC formulation for accommodating partial actuator failure. The simulation and experimental results show that it outperforms a conventional MPC without FDI.