The vertical vibration of the in-wheel motor electric vehicle (IWM-EV) induced by large unsprung mass is analyzed based on power flow method. The simulation results show that due to the unsprung mass increase of IWM-EV, energy consumption of the suspension and wheel is increasing, which will cause adverse effects on not just the ride comfort but the maneuver stability. To decrease the effect, a new kind of vibration mitigation measure of the vehicle body absorber combined with an active hybrid control integrated the sky-hook and ground-hook methods is developed. The effectiveness of this measure is verified.