Abstract: The paper addresses the problem of proper stabilization of generalized decentralized systems with direct control feed through. A necessary and sufficient condition is developed and mathematically proved for generalized systems to be made internally stable and impulse-free (or to be properly stabilized)by decentralized normal dynamic compensators. It is shown that the unstable finite fixed modes and impulsive fixed modes are obstacles for properly stabilizing generalized decentralized systems. Our results are completely suitable for systems without direct control feed through terms ,and are of significance for the design of properly stabilizing decentralized normal dynamic compensators for generalized systems.