Methods and systems are provided for reducing torque transients experienced when a dedicated EGR cylinder is deactivated to reduce EGR. Before deactivating the dedicated cylinder, an intake throttle position and spark timing of remaining engine cylinders is adjusted to build-up torque reserve in anticipation of a negative torque transient at deactivation. Then, the throttle position or spark timing is adjusted to reduce torque when a positive torque transient is expected.