This paper studies the problem of fault-tolerant control for the drag-free satellite subject to actuator failures and input saturations. Particularly, a new Kalman filter-based model predictive control method for the drag-free satellite is proposed. Based on the developed dynamic model and the Kalman filter strategy, a new fault-tolerant design scheme is presented for the challenging situation where the satellite is subject to measurement noise and external disturbance. With the designed controller, the robustness of the system can be guaranteed, and the problem caused by actuator constraints and faults can be solved. Finally, the correctness and effectiveness of the proposed method are verified by numerical simulations.