A new approach for modeling and analysis of a transmission and driveline system is proposed. By considering the stiffness, damping and inertias, model equations based on lumped parameters can be created through standard Lagrangian Mechanics techniques. A sensitivity analysis method has then been proposed on the eigenspace of the system characteristic equation to reveal the dynamic nature of a transmission and driveline system. The relative sensitivity calculated can clearly show the vibration modes of the system and the key contributing components. The usefulness of the method is demonstrated through the GM 6-speed RWD transmission by analyzing the dynamic nature of the driveline system. The results can provide a fundamental explanation of the vibration issue experienced and the solution adopted for the transmission. The proposed method can greatly simplify the NVH related analysis, which is useful for architecture selection, shift dynamic analysis, TCC damper design, driveline analysis, hardware and control design. It is also useful for other applications beyond transmission and driveline systems.