The aim of this study is to introduce a fuzzy logic controller for active steering control of a vehicle. A lot of unexpected events might occur on the road due to slippery road condition which can be considered as one of the major factors of accidents. Hence, a nonlinear fuzzy logic observer based active steering controller is proposed that will overcome the disturbances such as wet and icy road conditions and crosswind. The controller has proved that it can stabilize the steering wheel and reduce the time for system to achieve the steady state condition. In the simulations, comparisons are made between the uncontrolled output, Sliding Mode Control (SMC), Sliding Mode Observer Based Controller (SMCO) and Linear Quadratic Regulator (LQR). It can be seen that Fuzzy controller performance is comparable to SMCO but much better when compared to LQR.