This paper proposes developing a H ∞ dynamic output-feedback decentralized control design method for nonlinear interconnected systems subject to time-varying parameters and external disturbances. The designed controller is formulated as an optimization problem subject to linear matrix inequalities (LMIs) for the concurrent computation of the decentralized observation and control gains, and for the external disturbance mitigation by means of a H ∞ performance criterion minimization. The propounded optimization problem, designed in LMI conditions, is expeditiously resolved by a one-step procedure to override the conservatism generated by using many step-based procedures often used in the analysis and synthesis of interconnected systems. The effectiveness of the developed control scheme is demonstrated through simulation results of multimachine power systems.