Application of electric machines in the traction and transmission systems of hybrid/electric vehicles has been studied for many years. The hybrid vehicle based on dual mechanical port (DMP) electric machine has gained more and more attention, because it eliminates the need for planetary gear and combines the motor and the generator into a compact electric machine. The DMP machine with a squirrel-cage outer rotor (SCDMP) is investigated in this paper. Due to its unique electromagnetic characteristics, control algorithms for conventional machines cannot be applied to the SCDMP machine. The methods to calculate the correct current commands and estimate the outer rotor flux position are proposed. Based on these two methods, a control algorithm for the SCDMP machine is proposed and estimated by simulation. The results show that the proposed control algorithm is able to independently control the torque productions and the flux levels of the two rotors of the SCDMP machine.