Telematics is being actively promoted a new technology based on Global Position System GPS and wireless voice and data communication, which is used in information communication between Service Suppliers and mobile objects (human, vehicles, etc). Telematics system supplies drivers and passengers with various information and services, such as real - time transportation information, vehicle navigation, living information, vehicle remote control, burglar alarm, emergency help, vehicle remote diagnosis and tracking, multimedia and Internet finance business, news and Email etc. The Terminal Control Unit TCU is the platform to implement Telematics service. Telematics system's most notable feature is that it is not just a single vehicle radio system, more importantly, it has a management service center, which is closely related with the service and is service-oriented. This paper presents a vehicle telematics design solution of embedded terminal controller, the consumer's requirement and expansibility of telematics system function is adequately considered in design. The vehicle terminal is telematics system's control platform, In practice, in order to maintain smooth handling and download speed, this system chooses Intel Atom processing chip and MU509 as its Central Process Unit and high download speed 3G communication chip respectively. This terminal uses Linux multi-task operation system and modularization software design method, which realizes navigation position and wireless network communication. The system low-power operation and communication reliability are given full consideration. Meanwhile, the controller also supplies expansion interface for other telematics services.