This paper investigates the stability and stabilization problem for nonlinear systems with neutral time delays represented by the Takagi-Sugeno (T-S) fuzzy model. First, the T-S fuzzy models with neutral time-delay are present and the stability conditions are derived in form of linear matrix inequalities (LMIs). Then a stabilization approach for nonlinear neutral systems through fuzzy output feedback controller is proposed. It shows that the analysis results provide an efficient technique for the design for fuzzy output feedback controllers. Sufficient conditions for the existence of fuzzy output feedback gain of the neutral time-delay systems are derived through the numerical solution of derived LMIs.