This paper describes modelling of the transient dynamics of an automatic transmission during gear changes. A brief introduction to the automatic transmission system and the dynamic characteristics of the transmission components during the gear changes are presented. Then, detailed mathematical models of a four-speed automatic transmission manufactured by BTR Automotive, Australia, are developed. A mode description method is used to describe the transient shifting process and a modular structure of the transmission system, which consists of a torque converter module, geartrain module, hydraulic system module and modules of clutches and bands, is presented. As an application, the developed simulation system is applied to investigate the transient performance of the automatic transmission during the 1–2 shift process. The output torque profiles predicted by the model simulation correlate very well with the experimental data measured from vehicle tests.