1. A method of operating a hybrid vehicle having a discrete ratio transmission comprising: operating the vehicle in a first engine state by shifting the transmission according to a first shift schedule; operating the vehicle in a second engine state by shifting the transmission according to a second shift schedule; while in a first transmission ratio as selected by the first shift schedule, transitioning from the first engine state to the second engine state at a first vehicle speed and first pedal position at which the second shift schedule would select a second transmission ratio different than the first transmission ratio; and immediately following the transition from the first engine state to the second engine state, maintaining the transmission in the first transmission ratio.