A vehicle in which a drive state can be favorably selected in a configuration that separately and independently drives front and rear wheels and a method for controlling the vehicle. In the vehicle and control method thereof, a drive state control device prohibits operation of a first switch between front wheel drive (FWD) and all wheel drive (AWD) and a second switch between rear wheel drive (RWD) and AWD when a lateral acceleration related value of the vehicle exceeds a first threshold value G1. The first threshold value G1 is set with a divergence reference value Gref as a reference. The Gref value is determined considering factors such as lateral acceleration, turning characteristics and the drive state of the vehicle.