Combined with the transmission ratio charac-teristics of forklift steering-by-wire (SBW) system, through the application of fuzzy control technology, the variable transmission ratio function is designed based on the steering handle angle and vehicle speed, and simula-tion analysis of sinusoidal steering is done at low-speed and high-speed. Simulation results show that the fuzzy variable transmission ratio control can make forklift steering light & sensitive at low-speed and steering steady & heavy at high speed, also it can improve the operation stability and reduce the driver’s load. Discuss the relationship between yaw rate and forklift handling stability, propose the yaw rate feedback control strategy based on the fuzzy variable transmission ratio control, and design a fuzzy self-adaptive PID controller. Simula-tion results show that the SBW system based on the fuzzy variable transmission ratio control with yaw rate feedback can accurately and quickly track the desired yaw rate, and reduce or even eliminate the overshoot phenomenon, improve the forklift dynamic performance.