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Ford recently introduced an industry first Modular Hybrid Transmission (MHT) in the Model U concept vehicle at the 2003 North American International Auto Show. The MHT is a full function hybrid system (i.e. capable of electric drive) that utilizes a modular approach to leverage high volume conventional driveline components to create a lower-cost hybrid system [1]. In the MHT, the torque converter of a conventional automatic transmission is removed and in its place is packaged a single high voltage electric machine and an engine disconnect clutch. Advanced controls are used to enable hybrid functions. A critical element in the development of the MHT is the ability to replicate the functions of the torque converter without compromise to the vehicle drivability. In this paper, the control of four transmission functions in the MHT will be discussed: 1) transmission engagement, 2) vehicle launch, 3) power-on up-shift and 4) coast downshift.