A novel parallel hybrid electrical urban bus (PHEUB) configuration consisting of an extra one-way clutch and an automatic mechanical transmission (AMT) is taken as the study subject. An energy management strategy combining a logic threshold approach and an instantaneous optimization algorithm is proposed for the investigated PHEUB. The objective of the energy management strategy is to achieve acceptable vehicle performance and drivability requirements while simultaneously maximizing the engine fuel consumption and maintaining the battery state of charge in its operation range at all times. Under the environment of Matlab/Simulink, a computer simulation model for the PHEUB is constructed by using the model building method combining theoretical analysis and bench test data. Simulation and experiment results for China Typical Bus Driving Schedule at Urban District (CTBDS_UD) are obtained, and the results indicate that the proposed control strategy not only controls the hybrid system efficiently but also improves the fuel economy significantly.