A transmission includes a selectable one-way clutch with active and passive states. Successful transition from the active state to the passive state is only possible when there is no torque tending to cause overrunning. After commanding a transition from the active state to the passive state, a controller partially engages a first friction clutch to induce a torque tending away from overrunning until a lash crossing is detected. Then, the controller releases the first clutch and partially applies a second clutch to induce a torque toward overrunning. When slip is detected, indicating successful achievement of the passive state, the second clutch is released.