An avoiding obstacle fuzzy controller for AGV is presented in this paper. Multi-sensors are used to detect obstacles information. The fuzzy controller processes the distance of obstacles by using a 3×3 rule table. As to convert the fuzzy output into non-fuzzy value, Centre of Gravity Method (COG) is used to calculate an accurate control output. This fuzzy control algorithm can solve the problem of obstacle avoidance in unknown environment. And the AGV running path is smooth and the changing of speed is moderate.