A hybrid vehicle comprises a drive wheel (5), an internal combustion engine (1), a power generating motor (2) that generates an electric power by using an output power of the engine (1), and a planetary gear set (13) that comprises a combination of a gear element that is driven by the engine (1), a gear element that is connected to the power generating motor (2), and a gear element that is connected to the drive wheel (5). A target engine power is computed based on an accelerator operation amount. The engine (1) is controlled based on the target engine power. And control a rate of variation in the rotation speed of the engine (1) to be smaller, when the rotation speed of the power generating motor (2) increases than when the rotation speed of the power generating motor (2) decreases toward zero as a result of controlling the engine (1) based on the target engine power. Fuel consumption rate is thus improved.