By defining the bounded time lag space and other related concepts, this note formulates the notion of hybrid dynamical systems with time delay, which provides a unified framework for describing a large class of systems and is suitable for qualitative analysis. It also investigates stability properties of invariant sets by the method of Lyapunov functions and the Razumihin techniques. Criteria on uniform stability and uniform asymptotic stability are established for hybrid dynamical systems with time delay. Those criteria are then applied to conduct stability analysis for impulsive delay differential systems and nonlinear sampled-data feedback control systems with time delay.