This paper presents a motor-integrated transmission mechanism for use in parallel hybrid electric vehicles. The transmission can provide five basic modes of operation that can be further classified into sixteen sub-modes: one electric motor mode, four engine modes, four engine/charge modes, three power modes, and four regenerative braking modes. Each of these sub-modes can be grouped into like clutching conditions, providing the functional appearance of a conventional 4-speed automatic transmission, with electric launch, engine-only, engine/charge, power-assist, and regeneration capability. CVT capability is provided with one of the engine/charge modes. The kinematics, static torque, and power flow relations for each mode are analyzed in detail. Finally, a notional control strategy is developed. The transmission can be incorporated not only in front-wheel drive but also in rear-wheel drive vehicles. The compactness, mechanical simplicity, and operational flexibility of the transmission make it an excellent candidate for future hybrid electric vehicles.