The effects of hybridization on heavy-duty vehicles are not well understood. Heavy vehicles represent a broader range of applications than light-duty vehicles, resulting in a wide variety of chassis and engine combinations, as well as diverse driving conditions. Thus, the strategies, incremental costs, and energy/emission benefits associated with hybridizing heavy vehicles could differ significantly from those for passenger cars. Using a modal energy and emissions model, we quantify the potential energy savings of hybridizing commercial Class 3-7 heavy vehicles, analyze hybrid configuration scenarios, and estimate the associated investment cost and payback time. From our analysis, we conclude that (1) hybridization can significantly reduce energy consumption of Class 3-7 heavy vehicles under urban driving conditions; (2) the grid-independent, conventional vehicle (CV) -like hybrid is more cost-effective than the grid-dependent, electric vehicle (EV) -like hybrid, and the parallel configuration is more cost-effective than the series configuration; (3) for CV-like hybridization, the on-board engine can be significantly downsized, with a gasoline or diesel engine used for SUVs perhaps being a good candidate for an on-board engine; (4) over the long term, the incremental cost of a CV-like, parallel-configured Class 3-4 hybrid heavy vehicle is about $5,800 in the year 2005 and $3,000 in 2020, while for a Class 6-7 truck, it is about $7,100 in 2005 and $3,300 in 2020; and (5) investment payback time, which depends on the specific type and application of the vehicle, averages about 6 years under urban driving conditions in 2005 and 2-3 years in 2020.