A system and method are provided for grade-based anti-hunt shift control of an automatic transmission powering a machine. A shift controller determines a recommended gear in which to operate the transmission and sets an anti-hunt timer upon recommending a shift from a first gear to a second gear. The anti-hunt timer prevents a subsequent shift back to the first gear while the anti-hunt timer is running. A grade-based controller is configured to track machine operation and to determine when the machine operational factors change such that an estimated steady state gear differs from the second gear. When such a change is encountered, the grade-based controller clears the anti-hunt timer and sets a secondary timer. The clearing of the anti-hunt timer allows a downshift to accommodate the detected grade while the setting of the secondary timer prevents a subsequent clearing of the anti-hunt timer while the secondary timer is running.