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We construct a compact difference scheme for two-dimensional time-fractional nonlinear fourth-order diffusion equation with time delay. By choosing the second-order spatial derivative of the original unknown as an additional variable, the fourth-order problem is transformed into a second-order system. Then the linearized compact difference scheme is formulated by employing the L2−1σformula and the compact difference operator to approximate temporal Caputo derivative and spatial second-order derivatives, respectively. The unique solvability of the proposed scheme is proved. Then the scheme is proved to be stable and convergent with the rate of second order in time and fourth order in space. The efficiency of the scheme is supported by some numerical experiments.