This paper is concerned with the problem of the full-order observer design for a class of fractional-order Lipschitz nonlinear systems. By introducing a continuous frequency distributed equivalent model and using an indirect Lyapunov approach, the sufficient condition for asymptotic stability of the full-order observer error dynamic system is presented. The stability condition is obtained in terms of LMI, which is less conservative than the existing one. A numerical example demonstrates the validity of this approach.