This paper presents a new stabilization method for networked control systems (NCSs). An improved stability criterion dependent on both time delay bound and packet loss bound is derived and the corresponding stabilizing controller design technique is also provided. The merit of the proposed method lies in its much less conservatism, which is achieved by explicitly considering NCSs physical properties and by guaranteeing the deceasement of Lyapunov functional at each control signal updating step rather than at each sampling step, which is largely ignored in the existing literature. Illustrative examples are provided to show the advantage and effectiveness of the developed results. Crown Copyright (C) 2013 Published by Elsevier Ltd. All rights reserved.