This paper presents a design of the controller for vehicle lateral dynamics using active yaw moment. Vehicle lateral motion is incorporated with directional controllability and stability. These are conflicting each other from the view of vehicle handling performance. To compromise the trade-off between these two aspects, we suggest a new control algorithm based on the sliding mode with time-varying switching surface according to the body side slip angle. The controller can deal with the nonlinear region in vehicle driving condition and be robust to the parameter uncertainties in the plant model. Control performance is evaluated from the simulation for the vehicle of real parameters on the road with various tire-road frictions.