The control method of the conventional traction control system on split-μ surfaces improves vehicle acceleration performance, but influences its stability performance. To solve this problem, a hierarchical traction control system for ISG hybrid electric vehicles based on multi-objective dynamic coordination control (MHEVTCS) is proposed. In the upper level controller, a target driving torque calculating strategy based on dynamical sliding mode control is developed. In the lower level controller, such strategies as multi-objective dynamic coordination control strategy, brake torque control strategy based on an inverse model, target engine torque design strategy and torque dynamic coordinate control strategy are proposed. Detailed simulation and hardware-in-loop experiment results show that slipping wheels are controlled quickly, accurately and smoothly by MEHVTCS. MHEVTCS solves the problem of merely pursuing acceleration performance and neglecting stability performance of conventional traction control system.