A vehicle cruise control algorithm using an Interacting Multiple Model (IMM)-based Multi-Target Tracking (MTT) method has been presented in this paper. The vehicle cruise control algorithm consists of three parts; track estimator using IMM-Probabilistic Data Association Filter (PDAF), a primary target vehicle determination algorithm and a single-target adaptive cruise control algorithm. Three motion models; uniform motion, lane-change motion and acceleration motion. have been adopted to distinguish large lateral motions from longitudinal motions. The models have been validated using simulated and experimental data. The improvement in the state estimation performance when using three models is verified in target tracking simulations. The performance and safety benefits of a multi-model-based MTT-ACC system is investigated via simulations using real driving radar sensor data. These simulations show system response that is more realistic and reflective of actual human driving behavior.