In a powertrain for motor vehicle that includes an engine, a first electric machine and a second electric machine, each machine being able to function alternately as a motor and a generator, a transmission having an input driveably connected to the engine and the first electric machine and a transmission output driveably connected to the second electric machine and wheels of the vehicle, a method for controlling the powertrain includes using the engine to produce wheel torque, performing a gear shift using the transmission, if a reduction in powertrain output torque is to occur while modulating torque during the gear shift, operating one of the first electric machine and the second machine as an electric generator to reduce the powertrain output torque, and if an increase in powertrain output torque is to occur while modulating torque during the gear shift, operating one of the first electric machine and the second machine as an electric motor to increase the powertrain output torque.