A system and method for estimating vehicle side-slip velocity that includes measuring the lateral acceleration of the vehicle, measuring the yaw rate of the vehicle, measuring the longitudinal speed of the vehicle and measuring the steering angle of the vehicle. The measured longitudinal speed is corrected to provide a true longitudinal speed using a filter factor based on the vehicle-dependent parameters and a steering angle. A constant is defined based on the measured longitudinal speed and a function is defined based on the combination of the vehicle-dependent parameters and the lateral acceleration. Side-slip acceleration is calculated using the measured lateral acceleration, the true longitudinal speed, the yaw rate, the constant and the function.