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This paper is concerned with the problems of stability analysis and stabilization for discrete-time Takagi-Sugeno fuzzy systems with time-varying state delay. By constructing a new fuzzy Lyapunov function and by making use of novel techniques, an improved delay-dependent stability condition is obtained, which is dependent on the lower and upper delay bounds. The merit of the proposed stability condition lies in its reduced conservatism, which is achieved by avoiding the utilization of some bounding inequalities for the cross products between two vectors. Then, a delay-dependent stabilization approach based on a parallel distributed compensation scheme is developed for both state feedback and observer-based output feedback cases. The proposed stability and stabilization conditions are formulated in terms of linear matrix inequalities, which can be solved efficiently by using existing optimization techniques. Two illustrative examples are provided to demonstrate the effectiveness of the results proposed in this paper.