This paper proposes an on-line sliding mode control allocation scheme for fault tolerant control. The effectiveness level of the actuators is used by the control allocation scheme to redistribute the control signals to the remaining actuators when a fault or failure occurs. The paper provides an analysis of the sliding mode control allocation scheme and determines the nonlinear gain required to maintain sliding. The on-line sliding mode control allocation scheme shows that faults and even certain total actuator failures can be handled directly without reconfiguring the controller