Proton Exchange Membrane (PEM) fuel cell and battery are hybridized together to share the current in a Hybrid Electrical Vehicle (HEV) power demand. This paper presents, the of fuel cell and battery performance under different conditions such as motoring and regenerative mode of Permanent Magnet Synchronous motor derive which will be beneficial for Electric Vehicle application. The sluggish response of fuel cell dominated by temperature and fuel delivery system, fast load dynamics will main cause of high voltage drop with in short interval of time which is recognize as full starvation phenomena. Therefore a suitable fuel cell system to supply power for electric vehicle application and to improve system performance during transient condition, there is a need of at least one auxiliary source. In this work fuel cell work as main source and battery will be auxiliary source. The electrical and heat energy generated directly from fuel cell by electro-chemical reaction process. In this work, A 48 V li-ion battery act as storage device is used to full fill the transient peak demand which is can't be fulfilled by Fuel Cell. The Output voltage maintain constant with the help of PI controller. The Hybrid power is fed using Voltage Source Inverter (VSI) to 3-Φ Permanent Magnet Synchronous Motor Derive. The proposed system is verified through simulation results using MATLAB/Simulink.