Dynamic observers are commonly used in feedback loops to estimate the system’s states from available control inputs and measured outputs. The presence of measurement noise degrades the performance of the observer and consequently degrades the performance of the controlled system. This paper presents a novel nonlinear higher-order extended state observer (NHOESO) for efficient state and disturbance estimation in presence of measurement noise for nonlinear single-input–single-output systems. The proposed nonlinear function allows a fast reconstruction of the system’s states and is robust against uncertainties and measurement noise. An analytical parameterization technique is proposed to parameterize the coefficients of the proposed nonlinear higher-order extended state observer in the case of measurement noise in the output signal. Several scenarios are simulated to demonstrate the effectiveness of the proposed observer.