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Hybrid electric vehicles (HEVs) are facing increased challenges of optimizing the energy flow through a vehicle system, to enhance both the fuel economy and emissions. Energy management of HEVs is a difficult task due to complexity of total system, considering the electrical, mechanical and thermal behavior. Innovative thermal management is one of the solutions for reaching these targets. In this paper, the potential of thermal management for a parallel HEV with a baseline control strategy under different driving cycles and ambient temperatures is presented. The focus of the investigations is on reducing fuel consumption and increasing comfort for passengers. In the first part of this paper, the developed HEV-model including the validation with measurements is presented. In the second part, the combined thermal management measures, for example the recuperation of exhaust-gas energy, engine compartment encapsulation and the effect on the target functions are discussed.