A method is provided for shutting down an internal combustion engine in a hybrid vehicle that includes a motor and a generator operatively connected to an engine crankshaft. The method includes the steps of reducing compression in at least one engine cylinder and operating the motor or generator to influence motion of the engine crankshaft during engine shutdown to attenuate oscillations in and expedite reduction of engine crankshaft speed. A system for shutting down a hybrid vehicle internal combustion engine is also provided.