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In this paper, we consider the problem of guaranteed cost control for a class of nonlinear systems. Firstly, a Takagi-Sugeno (T-S) fuzzy model is employed to approximate the nonlinear dynamic system subject to external disturbance and measurement noise. Next, based on the fuzzy model, the fuzzy observer-based controller is developed with the guaranteed cost performance. In order to minimize the cost function, sufficient condition for the existence of model reference tracking output feedback controller is derived in terms of linear matrix inequalities (LMIs), which can be solved using the convex optimization techniques. Finally, a numerical example is given to illustrate the effectiveness of the proposed method.