Multi-criteria decision-making (MCDM) is concerned with coordinating and taking care of matters of preference and preparation, including multi-criteria. Fuzzy soft set environments cannot be used to solve certain types of problems if attributes are more than one and further bifurcated. Therefore, there was a serious need to identify a new approach to solve such problems, so a new setting, namely the Fuzzy Hypersoft Sets (FHSS), is established for this reason. In this paper, we introduced some notions like union, intersection, subset, equal set, complement, null set, absolute set etc. of Fuzzy Hypersoft sets. The study has been enriched with many suitable examples to support the accuracy of the defined concepts. We also present an object recognition system from an imprecise data on a multiobserver. Decision-making system involves the construct of Comparison Table from a fuzzy hypersoft set in a parametric sense for decision-making.