The steering performance of a vehicle directly affects its handling and stability, and tire wear during steering. For multi-axle vehicles equipped with a mechanical hydraulic steering system (MHS), this paper describes a steering-by-wire hydraulic system (SHS) for a third axle that can reduce the steering wear of third-axle tires while improving the handling and stability. A hydraulic steering system based on a reliable self-locking alignment cylinder was designed in this study, and a nonlinear dynamics model of a multi-axle vehicle was developed. In terms of the control strategy, the upper controller was a decision selector with a lateral acceleration threshold of 0.3 g , at which point the system entered the nonlinear kinematic state as a criterion for decision-making. The suboptimal linear time-varying model predictive control (S-LTV-MPC) method or Ackermann steering theory was used to calculate the target steering angle of the third axle. The lower controller was a fuzzy proportional–integral–derivative controller for tracking the steering angle of the third axle. The simulation and test results showed that the S-LTV-MPC method can meet the requirements of real-time control and accuracy. The designed SHS exhibited good handling and stability, and anti-wear properties during steering.