Maximum load carrying capacity (MLCC) of flexible robot manipulators is computed based on closed-loop approach. In open-loop approach, controller is not considered, so the end effector deviation from the predefined path is significant and the accuracy constraint restrains the maximum payload before actuators go into saturation mode. In order to improve the MLCC, a method based on closed-loop strategy is presented. Since in this case the accuracy is improved the actuators constraint is not a major concern and full power of actuators can be used. Since controller can play an important role in improving the maximum payload, a sliding mode based partial feedback linearization controller is designed. Furthermore, a fuzzy variable layer is used in sliding mode design to boost the performance of the controller. However, the control strategy required measurements of elastic variables velocity that are not conveniently measurable. So a nonlinear observer is designed to estimate these variables. Stability analysis of the proposed controller and state observer are performed on the basis of Lyapunov's direct method. In order to verify the effectiveness of the presented method, simulation is done for a two-link flexible manipulator. The obtained maximum payload in open-loop and closed-loop cases is compared and the superiority of the method is illustrated and the results are discussed.