A fuzzy knowledge-based network is developed based on the linguistic rules extracted from a fuzzy decision tree. A scheme for automatic linguistic discretization of continuous attributes, based on quantiles, is formulated. A novel concept for measuring the goodness of a decision tree, in terms of its compactness (size) and efficient performance, is introduced. Linguistic rules are quantitatively evaluated using new indices. The rules are mapped to a fuzzy knowledge-based network, incorporating the frequency of samples and depth of the attributes in the decision tree. New fuzziness measures, in terms of class memberships, are used at the node level of the tree to take care of overlapping classes. The effectiveness of the system, in terms of recognition scores, structure of decision tree, performance of rules, and network size, is extensively demonstrated on three sets of real-life data.