Summary In this paper, a finite‐time sliding mode observer for nonlinear systems with unknown inputs is proposed. The observer is based on a method for the solution of time‐varying algebraic equations. This algebraic solver is shown to converge in finite time by means of Lyapunov analysis; furthermore, a way to tune it so that it converges after a user‐defined amount of time is presented. Through the use of this technique and sliding mode differentiators, the state variables and unknown inputs of a class of nonlinear systems, which do not need to be affine in the inputs, can be estimated without the explicit use of state transformations. Both the algebraic solver and the proposed observer are illustrated through simulation examples. Copyright © 2017 John Wiley & Sons, Ltd.