This paper proposes an observer-based proportional Derivative (O-BPD) fuzzy controller for uncertain discrete-time nonlinear descriptor systems (NDSs). Representing NDSs with the Takagi–Sugeno fuzzy model (T-SFM), the proportional derivative (PD) feedback method can be utilized in the fuzzy controller design via the Parallel Distributed Compensation (PDC) concept, such that the noncausal problem and impulse behavior are avoided. A fuzzy observer is proposed to obtain unmeasured states to fulfill the PD fuzzy controller. Moreover, uncertainties and transient response performances are taken into account for the NDSs. Then, a stability analysis process and corresponding stability conditions are derived from the Lyapunov theory with the robust control method and the pole constraint. Different from existing research, the Singular Value Decomposition (SVD) and the projection lemma are utilized to transfer the stability conditions into the Linear Matrix Inequation (LMI) form. Because of this reason, the conservatism of the analysis process can be reduced by eliminating the restriction on the positive definite matrix in the Lyapunov function. By giving the proper center and radius parameters of the pole constraint in the O-BPD fuzzy controller design process, the expected transient responses can be obtained for different designers and different practical applications. Finally, the effectiveness and applicability of the proposed O-BPD fuzzy controller are demonstrated by two examples of the simulation.