In this paper, a regenerative braking algorithm is presented and performance of a hybrid electric vehicle (HEV) is investigated. The regenerative braking algorithm calculates the available regenera tive braking torque by considering the motor characteristics, the battery SOC and the CVT speed ratio. When the regenerative braking and the friction braking are applied simultaneously, the friction braking torque corresponding to the regenerative braking should be reduced by decreasing the hydraulic pressure at the front wheel. To implement the regenerative braking algorithm, a hydraulic braking module is designed. In addition, the HEV powertrain models including the internal combustion engine, electric motor, battery, CVT and the regenerative braking system are obtained using AMESim, and the regenerative braking performance is investigated by the simulation. Simulation results show that the proposed regenerative braking algorithm contributes to increasing the battery SOC which results in the improved fuel economy. To verify the regenerative braking algorithm, an experimental study is performed. It is found from the experimental results that the regenerative braking hydraulic module developed in this study generates the desired front wheel hydraulic pressure specified by the regenerative braking control algorithm.