A mode switching method of a hybrid vehicle includes: determining a reference on-power as a reference for switching from a first mode to a second mode and a reference off-power as a reference for switching from the second mode to the first mode; determining a minimum on-power, a minimum off-power, and a maximum off-power; and determining a final on-power and a final off-power using the reference on-power, the reference off-power, the minimum on-power, the minimum off-power, and the maximum off-power.