With the particular passage capability, all-terrain vehicle (ATV) has been widely used for off-road scenarios. In this research, we conduct a lateral sway stability analysis for the suspension mechanism of a general vehicle and establish a mathematical model of static and dynamic stability based on the maximum lateral sway angle and lateral sway acceleration, by considering the combined angular stiffness of independent suspension, angular stiffness of the lateral stabilizer bar and vertical stiffness of tires. 3D point cloud data of a terrain environment is collected using an RGB-Depth camera, and a triangular topography map is constructed. The results in ADAMS show that the proposed stability model can accurately predict the critical tipping state of the vehicle, and the method deployed for real-world terrain modeling and simulation analysis is generalizable for the stability assessment of the interaction between ATV and real-world terrain.