In this paper, we present a novel iterative LMI approach to deal with the control problem for networked control systems (NCSs) with multiple packet dropouts. Two channel packet dropouts are simultaneously considered due to limited communication capacity. One is measurement channel packet dropout which is from the sensor to the controller. The other is control channel packet dropout which is from the controller to the actuator. The NCSs with both multiple measurement and control packet dropouts are first modeled as a stochastic parameter system which contains two independent Bernoulli distributed white sequences. A dynamic output controller is then designed to exponentially stabilize the networked system in the sense of mean square, and also achieve the prescribed H_∞ disturbance attenuation level. An iterative algorithm is developed to compute the optimal H_∞ disturbance attenuation and the controller parameters by solving the semi-definite programming problem via interior-point approach. Finally, two illustrative examples are provided to show the applicability of the proposed method.