In view of the problems related to vehicle-handling stability and the real-time correction of the heading direction, nonlinear analysis of a vehicle steering system was carried out based on phase plane theory. Subsequently, direct yaw-moment control (DYC) of the vehicle was performed. A four-wheel, seven-degree-of-freedom nonlinear dynamic model that included the nonlinear characteristics of the tire was established. The stable and unstable regions of the vehicle phase plane were divided, and the stable boundary model was established by analyzing the side slip angle–yaw rate ([Formula: see text]) and side slip angle–side slip angle rate [Formula: see text] phase planes as functions of the vehicle state variables. In the unstable region of the phase plane, taking the instability degree as the control target, a fuzzy neural network control strategy was utilized to determine the additional yawing moment of the vehicle required for stability restoration, which pulled the vehicle back from an unstable state to the stable region. In the stable region of the phase plane, a fuzzy control strategy was utilized to determine the additional yawing moment so that the actual state variables followed the ideal state variables. In this way, the vehicle responded rapidly and accurately to the steering motion of the driver. A simulation platform was established in MATLAB/Simulink and three working condition was tested, that is, step, sine with dwell, and sine amplification signals. The results showed that the vehicle handling stability and the instantaneous heading-direction adjustment ability were both improved due to the control strategy.