A system and method for providing a fault tolerant vehicle dynamics control (VDC) is described. The system includes a fault tolerance module that receives an indication of a fault in at least one of the actuators of the VDC and selects a fault compensation mode to maintain the stability of the motor vehicle in light of the received fault indication. The fault tolerance module proceeds by diagnosing at least one fault in at least one of the actuators, selecting a fault compensation mode based on the detected at least one fault and the driving condition, and compensating for the at least one fault by optimally controlling remaining operable actuators according to the fault compensation mode.