Stability and asymptotic stability of the null solution of the differential-difference equation (E)x′(t) = f(x(t), x(t − r)), f: RNxRN → RN, f(0, 0) = 0, are studied by means of an extension of the Liapunov–Razumikhin method. Let V: RN → R be a differentiate map, let C = C(+ −r, 0=, RN), and let x(t, ψ) denote the solution of (E) with initial condition ψ in C at t = 0. For t ≧ 0 let xt(ψ) be defined by xt,(ψ)(θ) = x(t + θ, ψ), −r ≦θ ≦0. Let V′ (ψ) be the variation of V along the solution x(t, ψ). We say that V is dichotomic with respect to (E) if there exist T ≧0 and Ω, a neighbourhood of the origin in C, such that if ψ is in the closure of the set where V′ (xT(ψ)) >; 0, then V(x(T, ψ)) ≦ V(x(s, ψ)) for some s, −r ≦ sT. It is proved that if V is positive definite, continuously differentiable, and dichotomic, then the null solution of (E) is stable. A concept of strict dichotomic map is introduced and used to prove asymptotic stability. A number of examples are given to illustrate the applications of the method.