A multivariate control method and system to control torque output from a powertrain system to a driveline is provided, to reduce driveline oscillations. The powertrain preferably comprises hybrid powertrain having a plurality of torque-generative devices connected to a transmission. Desired powertrain and driveline operating states are determined, as are a plurality of operating state errors. Each torque-generative device is controlled, based upon the operating state errors, and operating mode of the transmission. A damping torque command, additive to a commanded torque, is determined for one or more of the torque-generative devices based upon the determined transmission operating mode. Determined operating states include operator input, and powertrain/driveline including driveline torque; transmission input torque, rotational speed of the torque-generative devices; road load; and, accessory load.