This　article　addresses　the　decentralized　H　output　feedback　control　for　discrete-time　large-scale　nonlinear　systems.　The　considered　large-scale　system　contains　several　subsystems　with　nonlinear　interconnection　and　time-varying　delay,　and　Takagi-Sugeno　model　is　used　to　represent　each　nonlinear　subsystem.　We　aim　at　designing　a　decentralized　piecewise　fuzzy　memory　dynamic-output-feedback　(DOF)　controller　that　guarantees　the　stabilization　and　H　performance　of　the　resulting　closed-loop　control　system.　First,　we　propose　a　model　transformation　that　reformulates　the　problem　of　decentralized　H　output　feedback　control　into　the　stability　analysis　with　input-output　form.　Then,　we　introduce　a　piecewise　Lyapunov-Krasovskii　functional,　where　all　Lyapunov　matrices　are　not　necessarily　positive　definite.　By　combining　with　the　scaled　small　gain　theorem,　the　less　conservative　solution　to　the　problem　of　decentralized　piecewise　fuzzy　memory　H　DOF　controller　design　for　the　considered　system　is　derived　in　terms　of　linear　matrix　inequalities.　The　advantage　of　the　proposed　method　is　finally　validated　using　two　numerical　examples.　(c)　2016　Wiley　Periodicals,　Inc.　Complexity　21:　268-288,　2016