Traction control systems are used to prevent wheel slippage and to maximize traction forces. This paper proposes a new scheme to enhance vehicle lateral stability with a traction control system during cornering and lane changes. This scheme controls wheel slip during cornering by varying the slip ratio as a function of the slip angle. It assumes that a traction control system with the engine throttle angle is used. The scheme is dynamically simulated with a model of front-wheel-driven passenger vehicles. Simulation results show that the proposed scheme is robust and superior to a conventional one, which is based upon fixed slip ratios, during cornering and lane changes.