The invention discloses a transmission and a control method of a vehicle hybrid power system, including an engine assembly, an auxiliary motor, a drive motor, a power input shaft, a first power output shaft, a second power output shaft, a differential and a storage battery; The control method consists of seven control modes, including pure electric drive mode, pure power drive mode, hybrid drive mode, full power output mode and energy recovery mode, and the gear shift component adopts a two-speed configuration. Beneficial effects: the present invention can make more full use of the performance of the auxiliary motor and the driving motor, so that the working range of the engine assembly can be further optimized, and at the same time, the full use of the motor can effectively improve the working efficiency of the entire system; the two-speed configuration is further simplified The internal structure of the transmission frees up space and saves costs; the mechanism of the first synchronizer is added to the arrangement of the auxiliary motor, which increases the working mode of the auxiliary motor and makes the entire system work more smoothly.