A two-mode, compound-split, electro-mechanical transmission utilizing an input member for receiving power from an engine, and an output member for delivering power from the transmission. First and second motor/generators are operatively connected to an energy storage device through a control for interchanging electrical power among the storage means, the first motor/generator and the second motor/generator. The transmission employs three planetary gear subsets which are coaxially aligned. Each planetary gear arrangement utilizes first and second gear members, and each first and second gear members meshingly engage a plurality of planet gears rotatably mounted on a carrier. The first and second motor/generators are coaxially aligned with each other as well as the three planetary gear subsets which are circumscribed by the first and second motor/generators. At least one of the gear members in the first or second planetary gear subsets is connected to the first motor/generator. Another gear member in the first or second planetary gear arrangement is connected to the second motor/generator. The carriers are operatively connected to the output member. One of the gear members of the first or second planetary gear subsets is continuously connected to one of the gear members in the third planetary gear subset. Another gear member of the first or second planetary gear subset is operatively connected to the input member, and one gear member of the third planetary gear subset is selectively connected to ground.