For a class of nonlinear two-dimensional(2-D) discrete systems with time-varying state delays, which are described by local state space(LSS) Fornasini-Marchesini(FM) second model, stability and control problems are considered. The upper and lower bounds of time-varying state delays are positive integers and the nonlinearity satisfies Lipschitz condition. Firstly, a stability criteria is proposed through introducing a new Lyapunov function with the bounds of delays. Then a state feedback controller is designed to assure the stability of nonlinear 2-D time-varying systems. Moreover, the state feedback control law can be obtained by solving linear matrix inequality(LMI). Finally, a numerical example shows the effectiveness of the results.