A hybrid electro-mechanical transmission connectable with multiple power sources for launching and propelling a vehicle includes an output member and a stationary member. The transmission also includes a first planetary gear set having a first, a second, and a third node, and a compound planetary gear arrangement having a fourth, a fifth, a sixth, and a seventh node. The power sources include an engine, a first motor/generator and a second motor/generator. The engine, the first motor/generator and the second motor/generator are each operatively connected with the first planetary gear set, and the output member and the second motor/generator are each operatively connected with the compound planetary gear arrangement. Thus configured, the transmission provides forward under-drive and forward direct-drive gears for launching and propelling the vehicle, as well as a reverse gear.