An improved control method for an electronically controlled variable displacement refrigerant compressor, where the control has normal and high speed displacement control modes, with smooth transitions between such control modes. The displacement control mechanism is in the form of a solenoid valve, and the valve is pulse-width-modulated (PWM) at a variable duty cycle to regulate displacement of the compressor. When the compressor is operating in a normal speed range, a first control mode determines a normal PWM duty cycle to satisfy cooling demand; when the compressor is operating in a high speed range, a second control mode determines an alternate PWM duty cycle based on compressor speed. The solenoid valve is operated in accordance with the duty cycle corresponding to the lower displacement. A smooth transition from the normal control mode to the high speed control mode is achieved by scheduling the alternate duty cycle as a function of compressor speed. Once in the high speed control mode, the parameters of the first control mode are adjusted so that the normal duty cycle matches the alternate duty cycle. This ensures a smooth transition from the high speed control mode to the normal control mode when the compressor speed falls back into the normal speed range.