Continuous innovations in adaptive matched-field processing (MFP) algorithms have presented significant increases in computational complexity and resource requirements that make development and use of advanced parallel processing techniques imperative. In real-time sonar systems operating in severe underwater environments, there is a high likelihood of some part of systems exhibiting defective behavior, resulting in loss of critical network, processor, and sensor elements, and degradation in beam power pattern. Such real-time sonar systems require high reliability to overcome these challenging problems. In this paper, efficient fault-tolerant parallel algorithms based on coarse-grained domain decomposition methods are developed in order to meet real-time and reliability requirements on distributed array systems in the presence of processor and sensor element failures. The performance of the fault-tolerant parallel algorithms is experimentally analyzed in terms of beamforming performance, computation time, speedup, and parallel efficiency on a distributed testbed. The performance results demonstrate that these fault-tolerant parallel algorithms can provide real-time, scalable, lightweight, and fault-tolerant implementations for adaptive MFP algorithms on distributed array systems.