The structure and working principle of the hydraulic steering by-wire system were described, and the optimal control algorithm of the system was obtained by the comparative analysis. Fuzzy control was chosen as the steering systems control algorithm, and it can realize closed-loop control of the front wheel corner. Matlab/Simulink was used for the simulation of the entire system. The simulation got the fuel tank displacements response curve, and verified the accuracy of the system design, which can provide a reference to the design of tractors steering system. Bench test was proposed to verify the accuracy of the system. The bench test results showed that the hydraulic steering by-wire controller can realize systems steering function well, and the system improved the control accuracy and fast response characteristics.