Control method for traction control system of conventional internal combustion engine vehicle is not suitable for hybrid electric vehicle. The traction control system of hybrid electric vehicle should be redesigned. Hierarchical traction control system for ISG hybrid electric vehicle was proposed. In the top layer, desired traction total torque calculation strategy was used based on dynamical sliding mode control. In the middle layer, design algorithm of target engine torque based on low pass filtering and dynamic coordinate control strategy based on model matching 2-DOF control were developed. In the bottom layer, exit strategy based on dynamic compensation was proposed. At last, tests of simulation and hardware-in-loop were performed to verify the control system. Results of simulation and test showed that the proposed hierarchical traction control method for ISG hybrid electric vehicle could control the slipped wheels quickly and accurately to realize the traction control function of ISG hybrid electric vehicle effectively. 