A fuzzy observations-based radial basis function neural network (FORBFNN) is presented for modeling nonlinear systems in which the observations of response are imprecise but can be represented as fuzzy membership functions. In the FORBFNN model, the weight coefficients of nodes in the hidden layer are identified by using the fuzzy expectation-maximization ( EM ) algorithm, whereas the optimal number of these nodes as well as the centers and widths of radial basis functions are automatically constructed by using a data-driven method. Namely, the method starts with an initial node, and then a new node is added in a hidden layer according to some rules. This procedure is not terminated until the model meets the preset requirements. The method considers both the accuracy and complexity of the model. Numerical simulation results show that the modeling method is effective, and the established model has high prediction accuracy.