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According to the design requirements, the powertrain dynamic simulation model of an integrated starter/generator (ISG) hybrid electric vehicle (HEV) was established using Simulink. The parallel electric assist control strategy (PEACS) was researched and designed in this paper. The analysis of dynamics performance and fuel economy of the model was carried out under the FTP drive cycle, which can provide a design reference for the setup of the powertrain test bench. The results show that the fuel consumption can be effectively reduced by using the designed PEACS with the state of charge (SOC) of the battery maintaining in a certain scope. And the simulation results are basically in accord with the actual situation, which verifies the correctness and reasonableness of the established simulation model.