The problem of finite-time stability (FTS) for discrete-time systems with interval time-varying delay, nonlinear perturbations and parameter uncertainties is considered in this paper. In order to obtain less conservative stability criteria, a finite sum inequality with delayed states is proposed. Some sufficient conditions of FTS are derived in the form of the linear matrix inequalities (LMIs) by using Lyapunov–Krasovskii-like functional (LKLF) with power function and single/double summation terms. More precisely estimations of the upper bound of the initial value of LKLF and the lower bound of LKLF are proposed. As special cases, the FTS of nominal discrete-time systems with constant or time-varying delay is considered. The numerical examples are presented to illustrate the effectiveness of the results and their improvement over the existing literature.