Abstract: A system and method for a hybrid electric axle. The hybrid electric axle system, in one example, includes an engine interface assembly with an input shaft with a mechanical interface that is configured to receive mechanical power from an internal combustion engine. The system further includes an electric drive assembly that includes a traction motor that is rotationally coupled to a gear train and an electric drive disconnect clutch configured to selectively rotationally couple the gear train to a differential. Further, in the electric axles system, the engine interface assembly and the electric drive assembly are packaged in an axle housing.