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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.