In parallel-hybrid electric vehicles (HEVs), both the electric drive and the internal combustion engine provide driving torque to the wheels either separately or together. The electric drive also can be used as a generator to recharge the batteries when the engine produces more power than is needed to propel the vehicle. As a result of the battery peak power density requirement, the vehicle needs a multispeed transmission between the electric drive and the main differential. In addition, due to the load sharing between the two independent driving sources, a clutch to separate the internal combustion engine and electric drive from the drive shaft is also required. Because the shift quality is directly related to the driving comfort of the vehicle, it is important to reduce both shift shock and time. To enhance the shift quality, we have proposed the advanced gear-shifting and clutching strategy for a parallel-hybrid drive train with an automated manual transmission (AMT). By using the electronically controlled AMT, users can achieve the optimal gear shifting, with regard to the efficiency of the hybrid drive train. Owing to the speed control of the induction machine and the diesel engine at gear shifting, the synchronization is always guaranteed and it reduces the shift shock and shortens the shift time. The dynamo-based experiments have been carried out for the purpose of proving the validity of the proposed transmission and clutch control in parallel-hybrid drive trains.