This paper deals with the conservatism reduction of stability and stabilization conditions for nonlinear continuous-time interconnected systems. Based on Takagi–Sugeno modeling, the interconnected system is described by a convex combination of interconnected linear systems. Line integral fuzzy Lyapunov functions are considered to develop stability and stabilizability criteria for the considered class of interconnected nonlinear systems. All analysis and design conditions are formulated in LMI terms. The effect of the coupling due to interconnection terms is also investigated and taken into account to obtain less conservative conditions. Examples are given to illustrate the merit of the obtained results.