The present invention provides a system for compensating understeer and oversteer in a vehicle having a steer by wire system. The system includes a driver interface system, a sensor system, a controller, and a road wheel steering actuation system. The driver interface system receives steering input from the driver. The sensor system senses the steering input and generates a steering control signal that is received by the controller. The controller determines if an understeer or oversteer condition exists and generates an appropriate steering assist signal that is then communicated to the road wheel steering actuation system. In response to the steering assist signal, the road wheel steering actuation system adjusts the road wheel angle to compensate for the understeer or oversteer condition.