This paper deals with absolute stability for a class of nonlinear neutral systems using a discretized Lyapunov functional approach. A delay-dependent absolute stability criterion is obtained and formulated in the form of linear matrix inequalities (LMIs). The criterion is valid not only for systems with small delay, but also for systems with non-small delay. Neither model transformation nor bounding technique for cross terms, nor free weighting matrix method is involved through derivation of the stability criterion. Numerical examples show that for small delay case, the results obtained in this paper significantly improve the estimate of the stability limit over some existing result in the literature; for non-small delay case, the ideal results can also be achieved. (c) 2007 Elsevier Ltd. All rights reserved.