In this paper, a performance simulator and vehicle stability control algorithm are developed for an in-wheel motor independent drive electric vehicle. Dynamic model of the in-wheel motor independent drive electric vehicle powertrain components such as motor, battery, 15-DOF vehicle model, and etc are obtained by modular modeling approach using MATLAB/SIMULINK. In addition, ADAMS vehicle model is used in development of the performance simulator. In addition, a vehicle stability control algorithm is proposed, which consist of drive and brake torque distribution front/rear wheel, and direct yaw moment control and wheel slip control. Front/rear drive torque distribution is required to provide better vehicle cornering performance. Front/rear brake torque distribution is accomplished using ideal braking force distribution curve for vehicle stability during braking in turn. Direct yaw moment control is suggested to operate the vehicle to follow the desired yaw rate by feedforward plus feedback control. feedforward control operates by driver steering and acceleration and brake pedal input to remove understeer condition. feedback control operates compensating yaw rate error by left·right motor torque distribution. Finally wheel slip control maintains the desired slip ratio of the each wheel by the independent motor torque control. Simulation results show that the vehicle performance and stability can be improved by the independent in-wheel motor control.