An implicit finite element (FE) model was developed to accurately analyze the power transmitting mechanisms of CVT using a dry hybrid V-belt. The numerically analyzed results well agreed with the experimental results. The effects of angle mismatching of pulley groove and flange deflection on the power transmission were examined by using the present approach. The calculated results showed that the blocks were subjected to an over-load due to the pulley flange tilting. The angle mismatching between the pulley groove angle and the block wedge angle strongly affected the power transmission at both steady and transitional states. It was also found that the block tilting in the pulley groove affected the power transmission.