A hybrid electric vehicle includes an engine, an electric motor, a transmission gearbox, and a clutch selectively coupling the engine to the electric motor. Engine speed can drop dramatically when operating at high speeds during a scheduled shift event in the gearbox. To reduce the effects felt by the engine speed change, at least one controller is provided and programmed to slip the clutch when locked in response to a drive torque, estimated to be present upon completion of an anticipated shift event, exceeding available negative torque, such as regenerative torque and engine braking torque.