A hybrid vehicle with an engine and a rotary machine each coupled to a drive wheel in a power transmittable manner, comprises: an electronic control device that makes the rotary machine output a starting-time compensation torque to compensate a drop in a drive torque caused in a starting process of the engine in addition to a running torque when the engine is started while the vehicle is in a running state in which the drive torque is generated by the rotary machine and the engine is in a stopped state. The electronic control device starts the engine such that a starting-time inertia torque that is generated according to starting of the engine and causes the drop in the drive torque is made smaller when a torque margin of the rotary machine which is applied to the starting-time compensation torque is relatively small than when the torque margin is relatively large.