A hybrid electric vehicle includes an internal combustion engine, a traction battery, and a hybrid electric powertrain including an electric motor powered by the traction battery and an electric generator coupled to the internal combustion engine and the traction battery. A control method includes determining minimum and maximum engine power limits based on desired wheel torque and traction battery charge and discharge power limits. A generator torque command is calculated to track engine speed to the desired engine speed. The generator torque command is limited based on the minimum and maximum engine power limits to limit engine power transmitted to the powertrain.