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In this paper, dynamic output feedback control problem is investigated for a class of nonlinear interconnected systems with time delays. Decentralized observer independent of the time delays is first designed. Then, we employ the bounds information of uncertain interconnections to construct the decentralized output feedback controller via backstepping design method. Based on Lyapunov stability theory, we show that the designed controller can render the closed-loop system asymptotically stable with the help of the changing supplying function idea. Furthermore, the corresponding decentralized control problem is considered under the case that the bounds of uncertain interconnections are not precisely known. By employing the neural network approximation theory, we construct the neural network output feedback controller with corresponding adaptive law. The resulting closed-loop system is stable in the sense of semiglobal boundedness. The observers and controllers constructed in this paper are independent of the time delays. Finally, simulations are done to verify the effectiveness of the theoretic results obtained.