A controllable selectable one-way clutch is provided for use within a hybrid transmission. The clutch comprises an outer and inner race, and a first and second selector plate. A transmission motor controller synchronizes the speeds of the races to facilitate application and release of the clutch, and a transmission controller communicates a signal to the clutch for re-positioning of the plates to apply and release the clutch. The clutch has three operational modes, including freewheeling and holding torque in one direction or both directions. A method is also provided for applying a selectable one-way clutch in a vehicle having a hybrid transmission with a motor controller and a transmission controller, including synchronizing the clutch speed using the motor controller, detecting the direction of the race speed difference, communicating the race speed difference to the transmission controller, and selecting between the clutch operational modes in response to the detected speed difference.