This paper describes the development of a controller design for the active control of suspension system, which improves the inherent tradeoff among ride comfort, suspension travel and road-holding ability. The developed design allows the suspension system to behave differently in different operating conditions, without compromising on road-holding ability. The effectiveness of this control method has been explained by data from time domains. Proportional-Integral-Derivative (PID) controller including hydraulic dynamics has been developed. The displacement of hydraulic actuator and spool valve is also considered. The Ziegler – Nichols tuning rules are used to determine proportional gain, reset rate and derivative time of PID controller. Simulink diagram of active suspension system is developed and analysed using MATLAB software. The investigations on the performance of the developed active suspension system are demonstrated through comparative simulations in this paper.