A controller commands an engine torque level in response to a driver demanded torque based on an accelerator pedal position. If the driver demanded torque decreases rapidly during or just prior to a torque phase of a shift, the controller commands the engine to temporarily generate torque exceeding the driver demand. The controller sets a nominal engine torque equal to the driver demand torque before the rapid decrease, slowly decreases the nominal engine torque during the torque phase, and decreases the nominal torque at progressively faster rates during the inertia phase to bring the nominal torque back into agreement with the driver demanded torque. The commanded engine torque is based on the nominal torque, but may be less than the nominal torque during the inertia phase to permit the engine speed to decrease faster.