This paper presents a systematical reduced-order observer design method for a class of switched descriptor systems containing unknown inputs (UIs) in both the dynamic and the output equations. Generally speaking, when the output of the system contains UIs, the reduced-order observer design will become much more challenging. In order to overcome the difficulty brought by the UIs in the output, first, by introducing a new UI vector, a new equivalent system is obtained, which does not contain UIs in the corresponding output any more. Then, for the purpose of reduced-order observer design, the observer matching condition (OMC) and the minimal phase condition (MPC) are discussed, and it is shown that the new general system maintains both the OMC and the MPC. Subsequently, based on the discussions on the existence conditions, a reduced-order unknown input observer is developed to asymptotically estimate the state of the original system. Finally, an electronic circuit example is given to show the effectiveness of the proposed method.