This paper describes the development of a nonlinear observer for four wheel steer (4WS) vehicle. An observer is designed to estimate the vehicle variables difficult to measure directly. A brake yaw motion controller (BYMC), which uses a PID control method, is also proposed for controlling the brake pressure of the rear and inner wheels to enhance lateral stability. It induces the yaw rate to track the reference yaw rate, and it reduces a slip angle on a slippery road. The braking and steering performances of the anti-lock brake system (ABS) and BYMC are evaluated for various driving conditions, including straight, J-turn, and sinusoidal maneuvers. The simulation results show that developed ABS reduces the stopping distance and increases the longitudinal stability. The observer estimates velocity, slip angle, and yaw rate of 4WS vehicle very well. The results also reveal that the BYMC improves vehicle lateral stability and controllability when various steering inputs are applied.