SummaryThis paper addresses the issue of finite‐time boundedness of large‐scale interconnected systems with the use of a distributed nonfragile fault‐tolerant controller. The objective of this paper is to design a state‐feedback controller consisting of a time‐varying delay such that the resulting closed‐loop system is finite‐time bounded under a prescribed extended passivity performance level even in the presence of all admissible uncertainties and possible actuator faults. More precisely, based on the Lyapunov‐Krasovskii stability theory, a new set of sufficient conditions is obtained in the framework of linear matrix inequality constraints that ensures finite‐time boundedness and satisfies the prescribed extended passivity performance index of the considered system. Finally, two numerical examples, including the interconnected inverted pendulum, are given to show the effectiveness of the proposed controller design technique.