A powertrain includes a transmission coupled to a driveline. A method for monitoring torque of the driveline includes monitoring signals from first and second rotational sensors located at respective first and second rotationally-coupled positions of the driveline separated by a distance along the driveline, determining rotation of the driveline at the first and second rotationally-coupled positions from said signals, determining a twist angle derived from a difference between the rotations of the driveline at the first and second rotationally-coupled positions, calculating a driveline torque corresponding to the twist angle, and controlling operation of the powertrain in response to the driveline torque.