This article proposes a novel approach to synthesize a decentralized observer-based controller for a large-scale nonlinear systems in which the interconnection terms are expressed in the nonlinear forms. The large-scale nonlinear system is modeled under the framework of the large-scale polynomial T-S fuzzy systems which can reduce the modeling error and the number of fuzzy rules. It is noted that the interconnection terms are arbitrary nonlinear functions and unnecessary to satisfy the bound constraints, while these constraints are mandatory in the previous studies. Therefore, the proposed method is more relaxed and applicable in practice. A new observer form based on an unknown input method is proposed to simultaneously estimate the unmeasurable states and interconnection terms, which has not been taken into consideration in any previous articles. The information of the unknown states and interconnection is fed back to the controller for stabilizing the system. With the support of the Lyapunov function, the sum-of-square (SOS) technique, the conditions for designing the observer and controller are derived. Finally, the two numerical examples are provided to prove the success and merit of the proposed method.