This paper is concerned with the problem of observer design for a class of nonlinear systems with time-varying delay and bounded disturbances. For the stabilization problem, attention is focused on the design of a quantized observer that ensures stability of the closed-loop system. For the robust H ∞ control problem, a quantized observer is designed such that, in addition to the requirement of the robust stability, a prescribed disturbance attenuation level also needs to be achieved. The nonlinearity is assumed to satisfy the local Lipschitz condition. A more general case is considered, differing from the previous results where the Lipschitz constant is fixed and predetermined. Finally, a numerical example is provided to show the effectiveness of our method.