A hybrid vehicle and method of control include an internal combustion engine and at least one traction motor operated such that engine speed is a function of vehicle speed and target engine power. Target engine power, in turn, is a function of target wheel torque, vehicle speed, and battery state of charge. Target wheel torque, in turn, is a function of vehicle speed and accelerator pedal position. In a select shift mode, these calculations are adjusted based on a virtual gear number which varies in response to driver activation of shift selectors. The adjustments result in decreased engine speed and decreased wheel torque when higher virtual gear number are selected for given accelerator pedal positions and vehicle speeds. The ratio of engine speed to vehicle speed is not necessarily constant when operating in select shift mode.