An adjustable regenerative limit and warning system and method for controlling regenerative energy of a vehicle. The system includes a battery, a motor, a processor and an indicator. The motor provides regenerative energy to the battery during deceleration of the vehicle. The processor determines instantaneous or calculated traction loss of the vehicle and controls or limits the regenerative energy provided to the battery to avoid or reduce such traction loss. A drive mode having a predetermined regenerative energy capability is selected by the processor for limiting the regenerative energy. Sensors coupled with the battery sense characteristics of the battery for provision to the processor for determining a charge capability of the battery. If the charge capability for the battery is lower than the regenerative energy capable by the drive mode, the regenerative energy may be further limited and a warning or notification transmitted to a user of the vehicle.