Methods and systems are provided for integrating a VCR engine with a CVT transmission. Responsive to a driver demand, a controller may determine whether to maintain a current compression ratio or transition to an alternate compression ratio based on the fuel economy benefit of the transition and further based on any engine limitations that may be incurred at the engine speed-load following the transition. To improve the net fuel economy benefit while addressing the engine limitation, a compression ratio transition may be combined with a CVT adjusted engine speed-load regime, while maintaining engine power output.