Industrial vehicles work in complex terrain, the variable centre of mass position, leakage nonlinearity of full hydraulic steering and other issues lead to poor path tracking stability and accuracy. In this paper, an intelligent hierarchical controller for industrial vehicles’ path tracking is designed with full hydraulic steering leakage compensation, including an upper decision layer and a lower execution layer. The upper decision layer observes the pavement-tyre adhesion coefficients through an extended Kalman filter algorithm, and uses the real-time observations of the adhesion coefficients to establish a variable constraint control for the linear time-varying MPC, and thus performs the path tracking control. The lower actuator layer receives the upper layer’s target steering wheel angle output and performs steering operations. Based on the establishment of a mathematical model of full hydraulic steering considering the leakage characteristics, it analyses the leakage disturbance factors and constructs a fuzzy feed-forward steering leakage compensation controller to compensate for the leakage disturbances in real time for path tracking steering. Simulation and experimental results show that the lateral acceleration, sideslip angle, tyre side slip angle and tracking error of intelligent industrial vehicles under different loads and working conditions are improved by more than 32.4%, 35.8%, 40.2% and 45.8% respectively, and the designed hierarchical controller for the path tracking of intelligent industrial vehicles, which considers the compensation of all-hydraulic steering leakage, can effectively improve the path tracking stability and tracking accuracy of intelligent industrial vehicles under different loads and working conditions.