Here, we prove necessary and sufficient conditions for the existence of at least one psi-bounded solution of the matrix difference equation, under the assumption that the non-homogeneous function is a psi-summable matrix function and psi-bounded matrix function on Z+, and also obtain results relating to the asymptotic behavior of the psi-bounded solutions of this equation on Z+. Further, we obtain sufficient conditions for the existence and uniqueness of psi-bounded solutions for the nonlinear vector and matrix difference equation on Z.The concepts of psi- (uniform) stability and psi-asymptotic stability for non linear vector and matrix difference equations are introduced and also obtain sufficient conditions for the psi-(uniform)stability & psi-asymptotic stability of trivial solution of nonlinear vector and matrix difference equation. Also here, we provide a way to incorporate difference equations with fuzzy sets to form a new fuzzy logic system called fuzzy difference control system which can be regarded as a new approach to intelligent control and also obtain sufficient conditions for the controllability & observability of the fuzzy vector and matrix difference control systems.