An electro-mechanical transmission is provided having an input member for receiving power from an engine and output member. A plurality of gear members is operable for changing speed ratio between the input member and the output member. The input is connected with one of the gear members and the output member is connected with another of the gear members. A motor/generator is continuously operatively connected with the output member (via a planetary gear set) in parallel with the gear member that is continuously connected with the output member. The motor/generator is packaged axially between the input member and the plurality of gear members. The motor/generator is packaged in a packaging space typically utilized for a torque converter in a nonelectro-mechanical transmission. Thus, redesign of the nonelectro-mechanical transmission to achieve the electro-mechanical transmission involves a minimal number of steps.