Hybrid Electric Vehicles (HEVs) represent a critical transitional technology in the global movement toward decarbonized transportation. By combining internal combustion engines (ICEs) with electric propulsion systems, HEVs aim to enhance fuel efficiency, reduce emissions, and maintain the performance characteristics required by consumers. However, achieving optimal performance requires advanced strategies in powertrain design, energy management, and control algorithms. This study investigates the optimization of HEV powertrains with a focus on fuel efficiency enhancement, analyzing the interactions between power-split architectures, control methodologies, and real-world driving cycles. The methodology involves a synthesis of simulation-based experiments using MATLAB/Simulink and AVL CRUISE software, supplemented by experimental validation from published test data. Results highlight that rule-based energy management strategies provide robustness in urban driving but fall short in highway conditions, whereas model predictive control (MPC) demonstrates superior adaptability and efficiency gains up to 18% in WLTP drive cycle.