In this article, we consider the problem of designing distributed functional observers for time-varying delay interconnected systems under stealthy attacks. Distributed reduced-order observers are first designed to construct bounds for the attack signals. Then, the obtained bounds of the attack signals are utilized to design novel distributed functional observers, which provide interval estimations for linear functions of the state vectors of subsystems when the time-varying delay interconnected system is under stealthy attacks. Existence conditions of the distributed reduced-order observers as well as distributed functional state observers are established, and an effective algorithm for computing unknown observer matrices is provided. A numerical example is used to confirm the effectiveness and advantages of the obtained results.