Due to aging of a battery over lifetime, the rated power and nominal energy capacity will be reduced compared with the initial rated power and capacity. These result in influences on the vehicle driving performance and fuel economy. To monitor and diagnose the aging of the battery, in this paper, the method of predicting the available rated power and energy capacity of Li-ion battery under in-vehicle condition is proposed. Under constant power test, available power is calculated from the estimated parameters using recursive least square method. Further, available energy capacity is evaluated through SOH(cn) defined by the ratio of initial state-of-charge (SOC) variation to present SOC (\GdSOCⁿ/ΔSOCⁿ) variation under arbitrary in-vehicle driving cycles. To verify the proposed method, experiments for aging Li-ion battery are performed in hybrid electric vehicle.