A system and method for reducing torque disturbances during a shift event for a hybrid vehicle having an engine selectively coupled to a traction motor and an automatic transmission to control or compensate actual transmission input shaft torque based on measured transmission input torque by controlling a torque source, such as a traction motor. The system and method may include an engine, a transmission, a traction motor between the engine and the transmission with the engine being selectively coupled to the motor and the transmission by a disconnect clutch and a controller configured to control motor torque to cause an actual transmission input shaft torque to achieve a target transmission input shaft torque during a transmission shift event.