This paper presents a real-time multibody vehicle dynamic analysis method using recursive Kanes formulation and suspension composite joints. To shorten the computation time of simulation, relative coordinate system is used and the equations of motion are derived using recursive Kanes formulation. Typical suspension systems of vehicles such as MacPherson strut suspension system is modeled by suspension composite joints. The joints are derived and utilized to reduce the computation time of simulation without any degradation of kinematical accuracy of the suspension systems. Using the develop program, a multibody vehicle dynamic model is formed and simulations are performed. Accuracy of the simulation results is compared to the real vehicle field test results. It is found that the simulation results using the proposed method are very accurate and real-time simulation is achieved on a computer with single PowerPC 604 processor.