In this study, a control strategy for a dual mode power split-type hybrid electric vehicle (HEV) is developed based on the powertrain efficiency. To evaluate the transmission characteristics of the dual mode power split transmission (PST), a mechanical loss model of the transmission (TM loss) is constructed. The transmission efficiency, including the TM loss, is evaluated for the dual mode PST. Two control strategies for the dual mode PST are proposed. An optimal operation line (OOL) control strategy is developed to maintain a high engine thermal efficiency by controlling the engine operation point on the OOL. A speed ratio (SR) control strategy is proposed to obtain a greater transmission efficiency by shifting the engine operation point when the dual mode PST operates near the mechanical points. Using the TM loss and the proposed control strategies, a vehicle performance simulation is conducted to evaluate the performance of the two control strategies for dual mode PST. The simulation results demonstrate that, for the SR control strategy, the engine efficiency decreases because the engine operates beyond the OOL. However, the transmission efficiency of the dual mode PST increases because the PST operates near the mechanical point where the PST shows the greatest transmission efficiency. Consequently, the fuel economy of the SR control strategy is improved by 3.8% compared with the OOL control strategy.