Steering system and suspension system are two important subsystem of automobile chassis, and they both influence the vehicle ride comfort, safety and maneuverability. In order to improve the performance of automobile chassis system, it is of great significance to optimize the integrated system of steering and suspension. In this paper, the dynamic model of steering and suspension integrated system is established, and the evaluation indexes of the integrated system are proposed and deduced, which mainly involves steering energy consumption, steering road feel, steering sensitivity, ride comfort and steering stability. Based on the traditional multi-discipline optimization method of analytical target cascading (ATC), a system-level dynamic constraint analytical target cascading (DCATC) optimization method is proposed and applied to optimize the integrated system. DCATC enhances the information exchange between the subsystem and the total system, and improves the convergence and computation speed of the optimization. The simulation results show that the proposed DCATC can improve the comprehensive performance of the steering and suspension integrated system. Steering energy consumption and steering sensitivity are reduced, the steering road feel and ride comfort are improved effectively.