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A hybrid electric vehicle (HEV) system model, which directly simulates vehicle drive cycles with interactions among driver, environment, vehicle hardware and vehicle controls, is a critical CAE tool used through out the product development process to project HEV fuel economy (FE) capabilities. The accuracy of the model is essential and directly influences the HEV hardware designs and technology decisions. This ultimately impacts HEV product content and cost. Therefore, improving HEV system model accuracy and establishing high-level model-test correlation are imperative. This paper presents a Parameter Diagram (P-Diagram) based model-test correlation framework which covers all areas contributing to potential model simulation vs. vehicle test differences. The paper describes each area in detail and the methods of characterizing the influences as well as the correlation metrics.