Lexus Hybrid Drive (LHD), that combines a gasoline engine and electric units has been implemented into luxury rear wheel drive vehicles such as LS, GS, IS and RC, and has widely spread around the world since 2005. To lead a future chapter of Lexus, in 2017, Lexus launched a new hybrid luxury coupe LC500h to enhance its brand and competitiveness. On the development of LC500h, LHD also made a major improvement and was pioneered to the next level as a powertrain. This new powertrain was named Multi Stage Hybrid System which maximizes the performance, drivability and efficiency with a newly developed transmission, electric units and driving control logics. This paper explains the new LHD with Multi Stage Hybrid System which achieved both high power performance and luxury drivability while maintaining environmental performance of fuel economy and emission, and introduces the technology which achieved direct feel drivability.