To improve the handling stability of distributed drive electric buses, a vehicle stability control system based on direct yaw moment control (DYC) with a hierarchical control structure was designed. Considering that the vehicle dynamics system is highly nonlinear, a nonlinear controller based on Lyapunov stability theory was designed to calculate the required additional yaw moment of the vehicle in the upper controller. In the lower controller, the additional yaw moment is distributed to four wheel-side motors according to the equal proportion torque distribution method, and the direction of wheel-side motor output torque is determined based on the steering state of the vehicle. A co-simulation based on Simulink and Trucksim was conducted to verify the designed controller under two extreme conditions. Simulation results indicate that the proposed method performs feasibly and effectively in the handling stability of vehicles. Compared with traditional sliding mode control (SMC), the proposed control strategy can significantly reduce the chattering of the system, which provides a theoretical basis for the application of this yaw stability control method in engineering practice.