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The University of Texas Center for Electromechanics (UT-CEM) has completed the successful design, integration and testing of a hybrid electric power and propulsion system incorporating a flywheel energy storage device. During testing, the improved drive train was shown to double acceleration rates while simultaneously reducing prime power usage in excess of 25% when compared to the same vehicle without the flywheel energy storage system. While the system was designed for and demonstrated on a transit bus, the technology described herein is applicable to a wide variety of applications, including additional mobile and marine power and propulsion systems. This paper (1) describes the drive train design with an overview of the critical components and (2) presents results from system-level testing of the transit bus with the integrated drive train.