A system and method for estimating vehicle lateral velocity and surface coefficient of friction using front and rear axle lateral force versus side-slip angle tables and sensor measurements. The sensor measurements include lateral acceleration, yaw-rate, longitudinal speed and steering angle of the vehicle. The method includes calculating front and rear axle lateral forces and front and rear side-slip angles on the axles of the vehicle. The method also includes identifying two equations from the calculated lateral forces and the vehicle measurements. The method provides tables that identify a relationship between the calculated front and rear axle lateral forces and the front and rear side-slip angles, and determines the vehicle lateral velocity and surface coefficient of friction from the tables.