A controller controls an electric motor such that a pulsation compensation torque corresponding to a pulsation component of a torque of an internal combustion engine, which appears in a drive shaft, is supplied to the drive shaft as a damping torque for suppressing vibrations of a hybrid vehicle. A determination is made as to whether a torque of the electric motor, excluding the pulsation compensation torque, is smaller than a predetermined value. When it is determined that the torque excluding the pulsation compensation torque is smaller than the predetermined value, the controller selects one mode having a highest energy efficiency of the hybrid vehicle from among a plurality of modes, and controls the internal combustion engine and the electric motor based on the selected mode.