A multi-speed internal bicycle hub transmission assembly includes a hub axle, a driver, a hub shell, a power transmission mechanism, a pawl and a pawl retracting mechanism. The driver is rotatably supported to the hub axle. The hub shell is rotatably supported to the hub axle. The power transmission mechanism is disposed between the driver and the hub shell for transmitting rotational power from the driver to the hub shell through at least a first power transmission path and a second power transmission path. The pawl is configured to transfer torque between the driver and the hub shell with torque being transferred along the first power transmission path. The pawl retracting member is configured to restrict movement of the pawl with torque transmitted along the second power transmission path.