A control device for a hybrid vehicle, the hybrid vehicle including an engine, a differential mechanism, a drive wheel, a first rotary machine, a second rotary machine, a stepped transmission, and an electric power storage device, the differential mechanism including a first rotary element to which the engine is coupled in a power transmittable manner, a second rotary element to which the first rotary machine is coupled in a power transmittable manner, and a third rotary element to which an intermediate transmission member is coupled, the second rotary machine being coupled to the intermediate transmission member in a power transmittable manner, the stepped transmission being a part of a power transmission path between the intermediate transmission member and the drive wheel, the stepped transmission being configured to engage predetermined engagement devices of a plurality of engagement devices so as to establish a corresponding one of a plurality of gear positions, and the electric power storage device being configured to supply and receive electric power to and from each of the first rotary machine and the second rotary machine, the control device comprising an electronic control unit configured to control release of a release-side engagement device of the predetermined engagement devices that establish the gear position before shifting and engagement of an engagement-side engagement device of the predetermined engagement devices that establish the gear position after shifting, such that the gear position that is established by the stepped transmission is changed, when the stepped transmission is shifted up, the electronic control unit is configured to perform an upshift of an entire transmission in which the differential mechanism and the stepped transmission are disposed in series, the electronic control unit is configured to perform a downshift of the entire transmission when the stepped transmission is shifted down, at a time period during shifting of the stepped transmission, the electronic control unit being configured to control output torque of the first rotary machine and output torque of the second rotary machine based on output torque of the engine and transmission torque of a shift progress side engagement device such that a change rate of a rotational speed of the second rotary machine and a change rate of a rotational speed of the engine reach respective target values, the shift progress side engagement device being an engagement device on a side progressing the shifting and being one of the release-side engagement device and the engagement-side engagement device, and the time period during shifting of the stepped transmission corresponding to a time period during shift transition of the stepped transmission in which rotational speed of the second rotary machine is decreased toward a synchronous rotational speed after the shifting at a time of the power-on upshift of the stepped transmission and a time period during shift transition of the stepped transmission in which the rotational speed of the second rotary machine is increased toward a synchronous rotational speed after the shifting at a time of a power-on downshift of the stepped transmission; wherein the electronic control unit is configured to set transmission torque of the shift progress side engagement device based on power (Pe) of the engine, power (Pina) necessary for progressing shifting of the differential mechanism and the stepped transmission, and chargeable/dischargeable electric power (Win, Wout) of the electric power storage device, such that limitation of output torque of the first rotary machine and output torque of the second rotary machine due to limitation of the chargeable/dischargeable electric power (Win, Wout) of the electric power storage device when shifting the stepped transmission is suppressed.