This investigation explores the variable-speed operation and shift response of a prototypical two-speed dual-clutch transmission tiltrotor driveline in forward flight. Here, a Comprehensive Variable-Speed Rotorcraft Propulsion System Modeling (CVSRPM) tool developed under a NASA funded NRA program is utilized to simulate the drive system dynamics. In this study, a sequential shifting control strategy is analyzed under a steady forward cruise condition. This investigation attempts to build upon previous variable-speed rotorcraft propulsion studies by 1) including a fully nonlinear transient gas-turbine engine model, 2) including clutch stick-slip friction effects, 3) including shaft flexibility, 4) incorporating a basic flight dynamics model to account for interactions with the flight control system. Through exploring the interactions between the various sub-systems, this analysis provides important insights into the continuing development of variable-speed rotorcraft propulsion systems.