A method of controlling a launch clutch during an engine restart event commands a positive torque capacity before the engine reaches idle speed. Early application of the launch clutch reduces the time delay between brake pedal release and vehicle acceleration. To avoid excessive drag on the engine during the restart event, the torque capacity is adjusted using closed loop control. A controller calculates a maximum rate of change of torque capacity based on measured engine speed and an engine acceleration and does not increase the commanded torque capacity faster than the calculated rate. In some circumstances the maximum rate of change may be negative, resulting in a reduction in commanded torque capacity.