The cascade structure of control system consisting of yaw-moment controller and wheel slip controller was adopted to develop vehicle stability control (VSC). An ideal model with the best performance of side-slip angle and yaw-rate was established. The strategy of both the forward-feed control and back-feed control of tracking the desired model was employed. The linear quadratic regulator (LQR) theory was exploited for yaw-moment controller. Ideal slip assignment model was proposed to determine the ideal value for slip controller from the yaw moment acquired from the yaw-moment controller. The fuzzy logic control theory was applied to slip controller. An 8-DOF nonlinear vehicle model was constructed based on Matlab/Simulink platform, and then simulation was performed under low friction and high friction road condition respectively. The results show that the proposed control algorithm can achieve the desired yaw-moment, the side-slip angle and yaw-rate can track the ideal model effectively. It can achieve good transient and steady response, and improve vehicle handling stability.