This paper discusses conditions on stability and stabilization of continuous Takagi-Sugeno (T-S) systems. Stability analysis is derived via nonquadratic Lyapunov function method and LMIs (Linear Matrix Inequalities) formulation. The nonquadratic Lyapunov function is built by inference of quadratic Lyapunov function on the same basis as the T-S model itself. We show that stability condition of the open-loop T-S systems is assured under certain restrictions on the rate of change of state variables. Following a similar approach, stabilization of the closed-loop continuous T-S systems using the well-known PDC (Parallel Distributed Compensation) technique is investigated. The design methodology is illustrated by numerical examples.