The stability of neutral systems with distributed delays is investigated in this paper. A modified Lyapunov-Krasovskii functional is constructed to study this class of systems. The proposed stability criterion is discrete-, distributed- and neutral-delay-dependent. In addition, by this method one can study the case when the coefficient matrix of the neutral delay term is time-varying uncertain. The reduced conservatism is illustrated in a numerical example. (C) 2008 Elsevier Ltd. All rights reserved.