This paper presents a vehicle stability control method based on a multi-input multi-output (MIMO) model reference adaptive control (MRAC) strategy as an advanced driver assistance system (ADAS) to enhance the handling and yaw stability of the vehicle lateral dynamics. The corrective yaw moment and additive steering angle are generated using direct yaw moment control (DYC) and active front steering (AFS) at the upper control level in the hierarchical control algorithm. A nonlinear term is added to the conventional adaptive control laws to handle parametric uncertainties and disturbances. The desired yaw moment generated by the upper-level controller is converted to the brake forces and is distributed to the rear wheels by an optimal procedure at the lower-level. The major contribution of this study is the introduction of a nonlinear integrated adaptive control method based on a constraint optimization algorithm. To verify the effectiveness of the proposed control strategy, the nonlinear integrated adaptive controller, and linear time-varying MRAC are designed and used for comparison. Simulation results are performed for the J-turn and double lane change (DLC) manoeuvres at high speeds and low tyre-road friction coefficients. The desired performance of the proposed controller exhibited significant improvement compared to the conventional MRAC in terms of yaw rate tracking and handling of sideslip limitation.