A slip control system for vehicles having spaced apart differentially driven wheels (200,202) including means (220) for calculating wheel slip according to the ratio of wheel speeds, means (242,230,232) for entering a slip control mode wherein a braking force is applied to the slipping wheel and incrementally varied on a periodic review basis according to recalculated slip values. If slip increases or holds steady, the brake force is incrementally increased. As slip becomes less, the brake force is incrementally reduced, the particular increments of force reduction being selected in accordance with successive measurements of slip. A drive shaft signal (226) is compared to the high wheel speed signal to identify a wheel speed transducer failure.