This paper is concerned with the problem of delay-dependent stability analysis for discrete-time systems with interval-like time-varying delays and the problem of stabilization for discrete-time linear systems via time-delayed controllers. The first problem is solved by applying a novel Lyapunov functional. and an improved delay-dependent stability criterion is obtained in terms of a linear matrix inequality. Based on this, a sufficient condition for the solvability of the second problem is presented. The reduced conservatism of the proposed stability result is shown through a numerical example, while the applicability of the time-delayed controller design method is demonstrated by an inverted pendulum system. (D) 2008 Elsevier Ltd. All rights reserved.