Abstract A multiyear power system R&D program was completed with the objective of developing an off-road hybrid heavy duty diesel engine with front end accessory drive-integrated energy storage. This system was validated to deliver 10.5–25.6% reduction in fuel consumption over current Tier 4 Final-based 18L diesel engines, over various off-road machine application cycles. The power system consisted of a downsized heavy-duty diesel 13L engine containing advanced combustion technologies, capable of elevated peak cylinder pressures and thermal efficiencies, thermal barrier coatings, exhaust waste heat recovery via SuperTurbo™ turbocompounding, and hybrid energy assisting and recovery through both mechanical and electrical systems. Following the concept definition, design, and analysis phases of the program, the final phase focused on building and validating the performance and efficiency in laboratory tests. While aspects of the system such as start/stop and reduced off-road cooling package energy losses were only analytically evaluated, the main 13L concept engine with full hybrid system was successfully built and tested in steady-state and in transient certification and real-world application cycles. Extensive simulations in Caterpillar's DYNASTY™ software environment utilized the validation test data to assess performance more fully and confidently over varied cycles and strategies. An average fuel consumption reduction of 17.9% was realized, and the majority (∼13%) of the benefit stemmed from the core concept 13L engine. To conclude, a total cost of ownership analysis provides context to commercial viability and where adoption focus should be placed.