AbstractIn this paper, we design dynamic event‐triggered interval functional observers (FOs) for interconnected systems comprising subsystems where each subsystem is subject to nonlinearities and output disturbances. Our design method consists of two main steps. First, we design decentralized dynamic event‐triggered mechanisms (ETMs) which use only locally measured output information. We then consider the design of distributed interval FOs by using the newly proposed ETMs. Their existence conditions are established and formulated in terms of linear programming. We also derive a bound on the estimated error vector and show that this bound is the smallest. Thus, this ensures that the unknown linear functional state vector can be estimated within an upper and lower bound of its true value by the designed interval observers. Finally, we apply the obtained results to design dynamic event‐triggered interval observers for linear functions of the state vectors of an ‐machine power system.