A method for controlling torque reduction of a hybrid electric vehicle including a motor and an engine as a power source includes: determining whether a request for a driving torque limit by a traction control system (TCS) is generated; calculating a motor torque command when the request for the driving torque limit by the TCS is generated; calculating an engine torque command based on the calculated motor torque command; calculating an available amount of charging of the motor according to a state of charge (SOC) of a battery of the hybrid electric vehicle; and determining a final motor torque command and a final engine torque command based on the calculated available amount of charging of the motor.