With increasing number of on-road transportationvehicles, the demand for passenger safety and comfort isinevitable. This inspired to develop technologically sophisticatedautomobiles with active safety systems that provide improvedvehicle handling during critical driving situations. Yaw stabilitycontroller prevents the vehicle from spinning and drifting-outunder loss of traction during a turning maneuver. This paperpresents a controller design based on sliding mode principle withtwo-stage sliding surfaces considering yaw rate and body sideslip angle errors as primary and secondary surfaces respectively.A simplified model of the vehicle during a turning (Slalom +DLC) maneuver is been considered and the dynamic equationsof the desired states were summed up and used to design thesliding surface. Computer simulations have been conducted toverify the proposed approach, with results indicating itseffectiveness and robustness for yaw stability control.