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A novel decentralized indirect adaptive output feedback fuzzy controller is developed for a class of large-scale uncertain nonlinear systems using error filtering. By the properly filtering of the observation error dynamics, the strictly positive-real condition is guaranteed to hold such that the proposed output feedback and adaptation mechanisms are practicable in practice owing to the fact that its implementation does not require the observation error vector itself any more, which corrects the impracticable schemes in the previous literature involved. The presented control algorithm can ensure that all the signals of the closed-loop large-scale system keep uniformly ultimately bounded and that the tracking error converges to zero asymptotically. The decentralized output feedback fuzzy controller can be applied to address the longitudinal control problem of a string of vehicles within an automated highway system (AHS) and the effectiveness of the design procedure is supported by simulation results.