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This paper constructed a parallel type hybrid-electric bus model based on GM-Allison system which is consisted of three planetary gear-sets and two motors. The simulation model is modified from the backward-looking simulation of ADVISOR. The hybrid-electric bus (HEB) is simulated to compare with a conventional diesel bus. Four different driving cycles are employed: Taipei City Bus Cycle, New York Bus Cycle, Manhattan Cycle, and Central Business District Cycle. Three different control strategies, namely speed control, torque control, and power control are studied. The simulation results show that the GM-Allison hybrid-electric bus with good control strategy can improve fuel economy by 66% compared to a conventional diesel bus. As for exhaust emissions, CO, HC, NOx and PM are reduced by 83%, 59%, 66% and 62%, respectively.