According to the theoretic knowledge of the vehicle suspension dynamics characteristic, dynamic equation of seven degree of freedom vehicle suspension was established. The dynamic equation was derived from the inertial physical coordinates to the sensors coordinate, and parameters have been identified by time-domain identification method and using actuator as an incentive. On the basis of the least squares estimation recursive algorithm, the vehicle suspension dynamics model is given from actuator to the sensor, and online parameters identification of suspension model was realized, which laid the foundation for the vibration active control of the seven degree of freedom vehicle suspension.