Based on a dual track road shape meter, various road roughness was measured. It was discovered that the road grading method in ISO 8608 assumes a constant waviness value of W = 2 with a one-straight line approximation, but it could not accurately fit and grade the measured road roughness. A high-precision piecewise fitting function for the low-frequency and high-frequency parts of the road roughness power spectral density (PSD) is established. A high-precision two-parameter grade method in multiple frequency bands for road roughness is proposed ( G q( n0), the geometric average of the road roughness index at n0, W, the waviness, is the slope of the road roughness PSD fitting expression in the double logarithmic coordinate system). According to the vehicle driving performance obtained by simulation, the grading method is verified. For Paved and Undulating roads, compared to the road roughness classification method in ISO 8608, the performance simulated based on the grade results of the two parameters grading method are closer to the performance simulated based on the measured road roughness. The grading method proposed in this paper can more accurately fit and classify the measured road roughness. The influence of these parameters at each frequency interval on vehicle driving performance is studied. A two-parameter identification method for road roughness PSD at variable intervals over a large frequency range is proposed. In the double logarithmic coordinate system, this method divides the selected spatial frequency into three sub-intervals along the abscissa, in each sub-interval, the parameters G q( n0) and W are identified separately. This method can provide effective control inputs for the vehicle’s active or semi-active suspension system.