This paper concerns the stability analysis problem of discrete linear systems with state saturation using a saturation-dependent Lyapunov functional.We introduce a free matrix characterized by the sum of the absolute value of each elements for each row less than 1,which makes the state with saturation constraint reside in a convex polyhedron.A saturation-dependent Lyapunov functional is then designed to obtain a sufficient condition for such systems to be globally asymptotically stable.Based on this stability criterion,the state feedback control law synthesis problem is also studied.The obtained results are formulated in terms of bilinear matrix inequalities that can be solved by the presented iterative linear matrix inequality algorithm.Two numerical examples are used to demonstrate the effectiveness of the proposed method.