Currently Hybrid Electric Vehicles (HEV) are being considered as an alternative to conventional automobiles in order to improve efficiency and reduce emissions. A major concern of these vehicles is how to effectively operate the electric machine and the ICE. Towards this end two operation strategies, an best efficiency and a least fuel use strategy, are presented in this paper. To demonstrate the potential of an advanced operation strategy for HEV's, a fuzzy logic controller has been developed and implemented in simulation in the National Renewable Energy Laboratory's simulator Advisor (version 2.0.2). Results have also been gathered from chassis dynamometer tests in order to verify the effectiveness of Advisor. The Fuzzy Logic Controller (FLC) utilizes the electric motor in a parallel hybrid electric vehicle (HEV) to force the ICE (66KW Volkswagen TDI) to operate at or near its peak point of efficiency or at or near its best fuel economy. Initial results from dynamometer testing and Advisor show that the vehicle with the Fuzzy Logic Controller can achieve (50) mpg in the city, while maintaining a state of charge of .68 for the battery pack, compared to (43) mpg for a conventional vehicle.