Automobiles play an important mobility role in present day context. Automobiles population is growing so also their speeds and occupant casualties. Automobiles safety is a major subject area and many governments have drawn safety norms and regulations. Electronic Stability Program (ESP) is one such advanced technology that is being adopted by many car manufacturers. The study conducted in the book presented here proposes a new way of implementing yaw stability control based on the concept of differential braking using a combination of Finite State Machine (FSM) theory and traditional PID controller. The whole vehicle stability control system consisting of a four-wheel drive vehicle model has been modeled using MATLAB/Simulink software whereas the controller design which is subdivided into control logic based on FSM and PID has been modelled using Stateflow chart and Simulink blocks. The controller deigned successfully stabilized the vehicle within few seconds of detecting the yaw instability and the same is validated using lateral transient response tests like single cycle sinusoidal and step input (J-Turn) with 8 different test scenarios.