There are many advantages of Epicyclic gear type automobile transmissions. It is composed more densely and weights lighter. It provides higher gear ratio and can transmit power differentially. Therefore, this type of transmissions are applied to almost every automobiles in recent years. However, the design process of an Epicyclic gear type automobile transmission is more complicated than Counter shaft type one. In the world, there are just two kinds of 8-speed Epicyclic gear type automobile transmission in production. This study introduced a design methodology of Parallel epicyclic gear type automobile transmission by decomposing and recomposing of Lever diagram. First we drew the Lever diagram from given rotation speed ratios. Next we listed all 3-point lever diagrams which are decomposed from the original Lever diagram, and deleted those with unreasonable value of K. Then we listed all combinations of 3-point lever diagram which composed the original Lever diagram, and we got all feasible epicyclic gear train mechanisms. After choosing feasible epicyclic gear train mechanism, we set up necessary clutches and breakes in clutch graphs. Finally, based on the clutch graph, we draw the schematic diagram of mechanisms, and embodies out results. Methodology of this study is better than old ones because our methodology based on Lever diagram did not need to find the usable mechanisms from the catalog of epicyclic gear train mechanisms. Thus, the new methodology simplifies the process of designing a epicyclic gear type automobile transmission.