This study introduces an integrated dynamic control with steering (IDCS) system to improve vehicle handling and stability under severe driving conditions. It integrates an active rear-wheel steering control system and a direct yaw-moment control system with fuzzy logic. Direct yaw-moment control is achieved by modifying the optimal slip of the front outer wheel. An 8-degree-of-freedom vehicle model was used to evaluate the proposed IDCS for various road conditions and driving inputs. The results show that the yaw rate tracked the reference yaw rate and that the body slip angle was reduced when the IDCS was employed, thereby increasing the controllability and stability of the vehicle on slippery roads. The IDCS system reduced the deviation from the center line for a vehicle running on a split m road.