A propulsion system for a fuel cell hybrid vehicle that includes a fuel cell system and an EESS, where the propulsion system employs an algorithm for increasing system efficiency. A power limit value is defined as the maximum system efficiency times the charge/discharge efficiency of the EESS. If the vehicle operator requests a power greater than the power limit value, then the fuel cell system will preferably provide the power, and if the power request from the vehicle operator is less than the power limit value, then the EESS will preferably provide the power. The algorithm also considers changing operation conditions and parameters that impact the fuel cell system efficiency and the electric energy storage system efficiency, such as the state of charge of the EESS and regenerative braking.