A new H-driveline system with controllable planetary gear sets for terrain and amphibious combat vehicle applications is presented. This new driveline system is based on two major components/innovations: 1) controllable distribution of power between individual driving wheels in response to specifics of operation profile, and 2) upgrading and reconfiguring the design of the driveline system to reduce the unsprung mass. Introducing Controllable Planetary Gear Sets makes the vehicle’s wheel-hub planetary gear sets controllable. The gear ratio of each CPGS can be individually managed in order to deliver to the wheels specific drive torques/rotational speeds in response to the wheel-terrain conditions of an operation profile. This individual wheel power distribution provides major contribution to mobility and energy saving. The reconfigured layout of the H-driveline reduces the wheel assembly weight (unsprung mass) and, thus, can improve the smoothness of vehicle ride and supports additional fuel saving. This paper analytically proves a potential of the H-drive system to improve mobility of an 8 × 8 amphibious vehicle when the vehicle egresses water.