A vehicle includes a fault-tolerant braking system that controls a brake assembly which is configured to adjust a braking force applied to one or more wheels. The fault-tolerant braking system further includes a brake-by-wire (BBW) system and a vehicle control module (VCM). The BBW system is configured to control the brake assembly in response to a braking request. The VCM is configured to detect a fault of at least one of the brake assembly and the BBW system. In response to detecting the fault, the VCM selectively operates the vehicle between a normal operating mode and at least one degraded driving mode that limits operation of at least one of the vehicle engine and the vehicle transmission compared to the normal operating mode.