In this paper, a multibody dynamic model is established to simulate the dynamics and control of moving web with its guiding system, where the term moving web is used to describe thin materials, which are manufactured and processed in a continuous, flexible strip form. In contrast with available researches based on Eulerian description and beam assumption, webs are described by Lagrangian formulation with the absolute nodal coordinate formulation (ANCF) plate element, which is based on Kirchhoff’s assumptions that material normals to the original reference surface remain straight and normal to the deformed reference surface, and the nonlinear elasticity theory that accounts for large displacement, large rotation, and large deformation. The rollers and guiding mechanism are modeled as rigid bodies. The distributed frictional contact forces between rollers and web are considered by Hertz contact model and are evaluated by Gauss quadrature. The proportional integral (PI) control law for web guiding is also embedded in the multibody model. A series of simulations on a typical web-guide system is carried out using the multibody dynamics approach for web guiding system presented in this study. System dynamical information, for example, lateral displacement, stress distribution, and driving moment for web guiding, are obtained from simulations. Parameter sensitivity analysis illustrates the effect of influence variables and effectiveness of the PI control law for lateral movement control of web that are verified under different gains. The present Lagrangian formulation of web element, i.e., ANCF element, is not only capable of describing the large movement and deformation but also easily adapted to capture the distributed contact forces between web and rollers. The dynamical behavior of the moving web can be accurately described by a small number of ANCF thin plate elements. Simulations carried out in this paper show that the present approach is an effective method to assess the design of web guiding system with easily available desktop computers.