In this project, a new control strategy is proposed to reduce fuel consumption of a parallel hybrid electric vehicle. Determination of optimal gear ratio in the continuously variable transmission (CVT) is the controller main idea. CVT has an effective role to operate the engine in the vicinity of its optimal operating points; consequently its proper control will lead to enhance fuel economy. The vehicle can move in five different modes. Depending on the state of charge of battery (SOC) and the requested power from driver, the controller chooses the best mode for vehicle motion. Knowing the mode, CVT controller refers to engine/motor optimal curve and determines CVT input speed as well as corresponding gear ratio. The controller attempts to maintain or improve the vehicle performance parameters and emission rates. In a part of control strategy, a fuzzy logic controller (FLC) is used to determine the proper vehicle mode. The controller also calculates engine excess power required to charge the battery. The control strategy tries to use as much regenerative power as possible. Results of implementing CVT controller are calculated over three drive cycles. In order to achieve better answers, FLC parameters are optimized using genetic algorithms. Optimized results have shown the control strategy achievement in reducing fuel consumption meanwhile the vehicle performance and emissions remain in their defined limits.