This paper presents the development of a new hydraulic. hybrid vehicle-based laboratory course for the Mechanical, Industrial, and Manufacturing Engineering Department at the University Of Toledo. The objective is to provide an educative tool for undergraduate students and to advance the research of hydraulic, hybrid vehicle technology. The educative module is based on a problem solving learning approach that aids students in gaining a richer understanding of elements from Courses of the Mechanical Engineering curriculum such as Fluid Dynamics and Hydraulics, Energy Si,stems, Vibrations, Mechatronics and Controls. Additionally, the modules developed for the hydraulic hybrid system will become available on the internet for other universities to utilize. The laboratory also serves as a research tool for the advancement of hydraulic hybrid vehicle technology. To this end, both graduate and undergraduate students will be performing experiments and simulations that will enhance understanding of hydraulic hybrid systems. The knowledge obtained will be utilized to help optimize the design of hydraulic hybrid vehicle technologies.