This study is concerned with the problem of the functional observer-based sliding mode control (SMC) design for parametric uncertain discrete-time delayed stochastic systems includes mismatched parameter uncertainty in the state matrix and in the delayed state matrix. Stability analysis of sliding function is presented in the time delayed stochastic system with a linear matrix inequality approach. Moreover, it is shown that the state trajectories can be driven onto the specified sliding surface despite the presence of state delay, unmatched parameter uncertainty and stochastic noise in the system. The research is motivated by the fact that the system states are not always accessible for the state feedback. Therefore, SMC is estimated using the functional observer technique. To mitigate the side effect of the parameter uncertainty on the estimation error, a sufficient condition of stability is proposed based on Gershgorin disc theorem. The claims made are validated through numerical simulations.