A vehicle includes a powertrain having an electric machine, and friction brakes configured to resist rotation of a vehicle wheel. The further includes at least one controller programmed to (i) issue a command for the electric machine to apply a regenerative torque to decelerate the vehicle in response to driver braking demand, and (ii) cause both a decay in the regenerative torque and a countervailing increase in the resistance of the friction brakes when vehicle speed is reduced to less than a first threshold such that braking demand is substantially satisfied by only the friction brakes when the vehicle speed is less than a second threshold.