Many real-world electrical and mechanical systems have velocity-dependent constraints in their dynamic models. For example, car-like robots, unmanned aerial vehicles, autonomous underwater vehicles and hopping robots, etc. Most of these systems can be transformed into a chained form, which is considered as a canonical form of these nonholonomic systems. Hence, study of chained systems ensure their wide applicability. This thesis studied the problem of continuous feed-back control of the chained systems while pursuing inverse optimality and exponential convergence rates, as well as the feed-back stabilization problem under input saturation constraints. These studies are based on global singularity-free state transformations and controls are synthesized from resulting linear systems. Then, the application of optimal motion planning and dynamic tracking control of nonholonomic autonomous underwater vehicles is considered. The obtained trajectories satisfy the boundary conditions and the vehicles' kinematic model, hence it is smooth and feasible. A collision avoidance criteria is set up to handle the dynamic environments. The resulting controls are in closed forms and suitable for real-time implementations. Further, dynamic tracking controls are developed through the Lyapunov second method and back-stepping technique based on a NPS AUV II model. In what follows, the application of cooperative surveillance and formation control of a group of nonholonomic robots is investigated. A designing scheme is proposed to achieves a rigid formation along a circular trajectory or any arbitrary trajectories. The controllers are decentralized and are able to avoid internal and external collisions. Computer simulations are provided to verify the effectiveness of these designs.