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A new hybrid direct/indirect adaptive fuzzy neural network (FNN) controller with a state observer and supervisory controller for a class of uncertain nonlinear dynamic systems is developed in this paper. The hybrid adaptive FNN controller, the free parameters of which can be tuned on-line by an observer-based output feedback control law and adaptive law, is a combination of direct and indirect adaptive FNN controllers. A weighting factor, which can be adjusted by the tradeoff between plant knowledge and control knowledge, is adopted to sum together the control efforts from indirect adaptive FNN controller and direct adaptive FNN controller. Furthermore, a supervisory controller is appended into the FNN controller to force the state to be within the constraint set. Therefore, if the FNN controller cannot maintain the stability, the supervisory controller starts working to guarantee stability. On the other hand, if the FNN controller works well, the supervisory controller will be deactivated. The overall adaptive scheme guarantees the global stability of the resulting closed-loop system in the sense that all signals involved are uniformly bounded. Two nonlinear systems, namely, inverted pendulum system and Chua's (1989) chaotic circuit, are fully illustrated to track sinusoidal signals. The resulting hybrid direct/indirect FNN control systems show better performances, i.e., tracking error and control effort can be made smaller and it is more flexible during the design process.