Hyundai, Toyota and GM automobile factory were committed to provide more speed planetary gear automatic transmission research and development in order to improve the transmission performance and fuel efficiency. To set embedded clutch into planetary gear mechanism is an effective way to get more speed ratio, its call an epicyclic-type automatic transmission with embedded clutches, referred to the embedded-type automatic transmission. For the development of automatic transmission with eight or more speed ratios, an efficient design methodology is urgently needed and still not available. Therefore, the purpose of this article is to develop a systematic method for the design of automatic transmission with embedded clutches. First, the features and requirements of the automatic transmissions with embedded clutches are investigated and the corresponding design requirements are induced. Next, the theory of the analysis of kinematic for automatic transmissions with embedded clutches is derived based on the concept of lever analogy. Then, the design theory of automatic transmissions with embedded clutches is developed based on the analysis theory. Finally, the complete atlas of automatic transmissions with embedded clutches can be systematically synthesized from the data of given speed ratios. In this article, the innovative and patentable seven-speed and eight-speed automatic transmissions with embedded clutches have been done. This proposed design method can also be applied to the development and design of ten-speed automatic transmissions with embedded clutches.