A vehicle includes a powertrain, an electric machine, a battery, and a controller. The powertrain is configured to transfer motive power to the electric machine to charge the battery during regenerative braking. The controller programmed to, in response to a decreasing demanded powertrain output torque, adjust a regenerative braking torque limit based on an anti-jerk torque schedule, generate an actual regenerative braking torque based on system constraints, and limit the actual regenerative braking torque to the regenerative braking torque limit.