Abstract: A transmission is provided with torque sensors on each of the power flow paths through the transmission so that actual torque data may be used in place of estimated data in controlling various vehicle operating characteristics, such as clutch apply or release, traction control, stability control and grade control, all of which are affected by the actual torque carried by the transmission. A method of controlling an automatic, multi-speed transmission includes operatively connecting the first torque sensor to the first shaft that partially establishes the first power flow path for a speed ratio of the transmission, sensing torque carried by the first shaft and controlling at least one vehicle operating characteristic based at least partially on the sensed torque.