This paper presents a decentralized controller design for formation flying of multiple satellites based on the overlapping decomposition technique. Each satellite is assumed to avail only the information of its own and in front of itself, which restricts the structure of a controller gain matrix to an overlapped form. The concerned large-scale system is expanded using the overlapping decomposition technique. Design condition is represented in terms of linear matrix inequalities with small-scale systems in a decentralized form, based on the expanded system. The resulting controller is contracted to the original overlapped form so as to close the original system. A numerical simulation shows the effectiveness of the proposed technique.