We provide a way to combine matrix Lyapunov systems with fuzzy rules to form a new fuzzy system called fuzzy dynamical matrix Lyapunov system, which can be regarded as a new approach to intelligent control. First, we study the controllability property of the fuzzy dynamical matrix Lyapunov system and provide a sufficient condition for its controllability with the use of fuzzy rule base. The significance of our result is that given a deterministic system and a fuzzy state with rule base, we can determine the rule base for the control. Further, we discuss the concept of observability and give a sufficient condition for the system to be observable. The advantage of our result is that we can determine the rule base for the initial value without solving the system.