This paper is on the development process of a hydraulic hybrid passenger vehicle. A subcompact passenger vehicle is chosen for modification into a series hydraulic hybrid with the aim of achieving a fuel economy of 100 MPG (2.35 L/100km) on the Urban Dynamometer Driving Schedule (UDDS). This work develops a methodology for simultaneously designing a powertrain and power management strategy of a series hydraulic hybrid. The design process was initiated by developing a system level model validated using engine and hydraulic pump/motor testing by the US EPA at the National Vehicle and Fuel Efficiency Laboratory (NVFEL). Parametric studies were performed in order to determine the size of the pump/motors and accumulators. Several candidate engines were tested and the system models were used to determine which one could provide the best fuel economy while meeting performance constraints. By using CAD modeling, coordinate measurement machines and rapid prototyping, packaging constraints were also considered while choosing components. A heuristic control strategy was developed, and the control parameters were optimized in order to maximize fuel economy. The hydraulic circuit was designed for implementation in the vehicle, with a structure in place for fail safe operation.