This study was conducted to investigate the effect of design parameters of modulating valve and hydraulic clutch on the shift quality of a power shuttle transmission using a computer simulation. Computer simulation models of a hydraulic control system and a power shuttle drive train were developed and verified by an experimental power train in a laboratory. The software EASY5 was used for the modeling and simulation of the power shuttle transmission. Results of the study were summarized as follows: For a good shift quality. it is required to reduce the transient torque transmitted to the output shaft of the transmission as much as possible. This may be achieved by reducing the modulating time and clutch pressure. It was found that the design parameters most significantly affecting the modulating time and clutch pressure were the spring constant and displacement of a load piston of the modulating valve, and the spring constant and damping of the clutch piston. The modulating time decreased as the spring constant increased and increased as the displacement of the load piston decreased. The transient torque decreased as the modulating time increased. However their relationships were not always linear. As the damping decreased, both the modulating pressure and time decreased, which also resulted in a decrease in the transient torque. The spring constant of the clutch piston affected the modulating time and the peak transient torque. As the spring constant of the clutch increased, the peak transient torque decreased.