The development, modelling and testing of a novel, fuel-efficient hydraulic hybrid light truck is reported. The vehicle used a Digital Displacement® pump/motor and a foam-filled hydraulic accumulator in parallel with the existing drivetrain to recover energy from vehicle braking and use this during acceleration. The pump/motor was also used to reduce gear-shift times. The paper describes the development of a mathematical vehicle model and the validation of this model against an extensive testing regime. In testing, the system improved the fuel economy of the vehicle by 23.5% over the JE05 midtown drive cycle. The validated mathematical model was then optimised and used to determine the maximum fuel economy improvement over the diesel baseline vehicle for two representative cycles (JE05 midtown and WLTP). It was found that the hybrid system can improve the fuel economy by 24%–43%, depending on the drive cycle. When this was combined with engine stop-start, the system improved the fuel economy of the vehicle by 29%–95%, depending on the drive cycle.