To improve the lateral guidance performance,a new lateral guidance approach based on the dynamic heading error corridor is proposed. The bank reversal is determined by the dynamic heading error threshold which is on-line adjusted according to the reference heading error corridor and the estimated actual lift-to-drag ratio. Near the end of the trajectory,the bank reversal is determined by the terminal heading error predictor which demands the derivative of heading error respect to the velocity and current velocity. The proposed method effectively improves the terminal guidance precision in the presence of aerodynamic model uncertainty,and prevents unnecessary bank reversals. Simulation results validate the effectiveness of the method.