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In off-highway applications the engine torque is distributed between the transmission (propulsion) and other accessories such as power steering, air conditioning and implements. Electronic controls offer the opportunity to more efficiently manage the control of the engine and transmission as an integrated system. This paper deals with development of a steepest descent algorithm for maximizing the efficiency of hydrostatic transmission along with the engine in the presence of accessory load. The methodology is illustrated with an example. The strategy can be extended to the full hydro-mechanical configuration as required. Applications of this approach include adjusting for component wear and intelligent energy management between different accessories for possible size reduction of powertrain components. The potential benefits of this strategy are improved fuel efficiency and operator productivity.