A voltage stabilizing and surge preventing vehicle grounding system is essentially constructed of a surge absorber, a surge suppresser, and a multi-tapped closed loop grounding wire. The positive terminal of the surge absorber is connected to a first conductor of the surge suppresser, whereas the negative terminal of the surge absorber is connected to the negative terminal of the vehicle generator. A second conductor of the surge suppresser is connected to the positive terminal of the vehicle generator so as to stabilize the output voltage of the generator and prevent the impulse surge from the generator. The grounding wire is formed into a closed loop consisting of a first half side and a second half side, and tapped off from the nodes en route to ground the negative terminals of the component devices of the vehicle along with the chassis so as to minimize the grounding resistance thereby further stabilizing the generator voltage and improving engine efficiency and signal precision of the computer that helps upgrade the response of the mechanical components of the vehicle to the computer signal.