A method for determining deterioration of a dry clutch mounted between an engine and a motor of a hybrid vehicle includes determining whether an entry condition to determine the deterioration of the dry clutch is satisfied. Roughness of the dry clutch is determined when the entry condition is satisfied. A deviation between the roughness of the dry clutch and a reference value is calculated, and the deviation is compared with a threshold value. A roughness counter of the dry clutch is increased when the deviation is larger than the threshold value. The roughness counter of the dry clutch is compared with a boundary value. It is determined that the dry clutch deteriorates when the roughness counter of the dry clutch is larger than the boundary value.