To provide a controller for an automatic transmission in a vehicle, capable of selectable operation between an automatic transmission (D) range and a manual transmission range for transmission corresponding to the operation of an operation member arranged near a steering wheel, wherein engine brake works with simple operation as the D-range remains selected.

In the condition that the a driver intends to make engine brake is recognized, in other words, that an accelerator switch is turned off with the cancellation of accelerator operation when a vehicle speed V exceeds a predetermined value VS during running, control is stopped in an automatic transmission mode to execute down-shift (S8) when down-shift operation is done by an operation member (S6).