A hybrid work machine includes: an engine controller (14) that controls rotational speed of an engine (7) in accordance with a target rotational speed input from an EC dial (31); an assist motor (10) that generates electricity using power of the engine (7); a hydraulic pump (6) operated using power of the engine and/or of the assist motor; and a vehicle body controller (11) that estimates power (Pe) the engine is required to output when a request to generate electricity is sent to the assist motor and permits the assist motor to generate electricity only when the engine power requirement is not greater than an electricity generation threshold value (Eth1). The electricity generation threshold value (Eth1) is determined based on the power and characteristics of energy loss of the engine (7).