A vehicle transmission includes a plurality of friction clutches and a selectable one-way clutch. The transmission also includes a controller programmed to, in response to detecting a component fault, switch the selectable one-way clutch from a passive state to an active state by commanding engagement of a first subset of the friction clutches to establish a slip elimination state. The controller is also programmed to, following establishment of the slip elimination state, command the selectable one-way clutch to the active state.