A driveline clunk control system for a vehicle having an engine that drives a driveline through a transmission includes a transmission output shaft speed (TOSS) sensor that generates a TOSS signal and a first module that receives the TOSS signal and that determines a secondary parameter (ΔTOSS) based on the TOSS signal. A second module detects onset of a clunk condition based on the ΔTOSS and a third module regulates operation of the vehicle to inhibit the clunk condition when the onset of the clunk condition is detected.