A method of regulating operation of a hybrid transmission in a vehicle includes determining a desired transmission state using a first module, generating transmission control signals based on the desired transmission state using a second module and receiving at least one transmission parameter signal at the second module. An actual transmission state is determined based on the at least one transmission parameter signal at the second module. Whether a fault is present within the hybrid transmission control system is determined based on the desired transmission state and the actual transmission state at the first control module.