With cost of debt and debt maturity structure as the feature of debt contracting, this paper investigates the relationship between internal control, corporate lawsuit and debt contracting by using the data from 2007 to 2012. We find that, on average, internal control quality is negatively correlated with corporate lawsuit probability; what’s more, the corporate lawsuit probability is positively correlated with the cost of debt, and negatively correlated with debt maturity structure. Further analysis shows that the relationship between corporate lawsuit probability and debt contracting is not significant in the subsample of the corporations with high internal control quality, but significant in the subsample of the corporations with low internal control quality. The results indicate that the high internal control quality will mitigate the negative impact of corporate lawsuit on debt contracting.