To provide a coaxial two-wheeled vehicle capable of performing a turning movement with stability and its control method. A coaxial two-wheeled vehicle in accordance with the present invention includes drive means to drive two coaxially-arranged wheels, turning reference-input input means to input a turning reference input, and control means to control the drive means according to a turning gain based on a turning reference-input input by the turning reference-input input means to thereby perform a turning movement. The control means preferably brings the turning gain to substantially zero when the coaxial two-wheeled vehicle is in a backward traveling state with a backward speed greater than or equal to a first speed, and sets the turning gain to a value greater than zero when a vehicle speed is substantially zero.