A hybrid vehicle has an engine, an electric machine connected to the engine by an upstream clutch, a transmission gearbox connected to the electric machine by a downstream clutch, and a controller. The controller is configured to, in response to a user commanded shift of the transmission, control the electric machine speed to a designated speed based on gearbox output speed and the transmission gear ratio after the shift, thereby synchronizing speeds across the gearbox for the shift. A method for controlling a hybrid vehicle provides, in response to a user commanded shift of an automatic transmission gearbox, controlling an electric machine speed to a target speed based on the transmission gear ratio after the shift where the target speed is synchronized with the transmission gearbox output speed.