This article investigates the problem of the decentralized adaptive output feedback saturated control problem for interconnected nonlinear systems with strong interconnections. A decentralized linear observer is first established to estimate the unknown states. Then, an auxiliary system is constructed to offset the effect of input saturation. With the aid of graph theory and neural network technique, a decentralized adaptive neuro-output feedback saturated controller is designed in a nonrecursive manner. A sufficient criterion is established to achieve the uniform ultimate boundedness (UUB) of the closed-loop system. An application example of autonomous underwater vehicle (AUV) is provided to verify the effectiveness of the developed algorithm.