A handing improvement algorithm based on motion tracking control is proposed for distributed drive electric vehicle which driving/braking torque of individual wheel can be control independently and accurately. An ideal reference model for motion tracking control is designed based on linear vehicle model with two degrees of freedom. According to the requirement of power steering, optimization characteristics of differential drive assisted steering are designed. The steering angle feed forward control is employed to improve yaw rate steady gain of reference model under the constraints of the motor external characteristics and the ideal characteristics of differential drive assist steering. Then an anti-windup PI control is proposed to track reference yaw rate by calculating the additional vehicle yaw moment. In addition, a torque distribution algorithm is presented to meet the driver’s intention during direct yaw torque control. Experiments under multiple maneuvers are carried out. The results indicate that the proposed controller can reduce driver operating burden by decreasing the steering wheel torque while the transient response and the steady gain of the yaw rate are improved. The algorithm can also effectively suppress the under steering caused by acceleration and significantly enhance the distributed drive electric vehicle’s handing performance.