A method for controlling charging and discharging of a battery pack for an electric or hybrid vehicle to prevent overheating damage. Current flowing into or out of the battery pack is monitored, and root mean square (RMS) current is integrated over a time window and compared to a threshold to determine if power needs to be regulated in order to prevent damage to the cells in the battery pack. If the time-integrated RMS current exceeds the threshold, a closed-loop proportional-integral (PI) controller is activated to regulate power input or output. The controller will continue to regulate power until the time-integrated RMS current drops below the threshold. Various thresholds can be defined for different time windows. The gains used in the PI controller can also be adjusted to scale the amount of power regulation.