The most serious drawback of the conventional two-stroke SI engine is its high exhaust emissions and low thermal efficiency due to short-circuiting of air/fuel mixture to the exhaust port. To minimize the short-circuiting losses, stratified scavenging technology has been developed. Electronic CNG injection was developed for better fuel economy and reduced emissions. Tests were conducted in two phases; first phase, the carburetor was replaced by the manifold injection and second phase stratified scavenging with manifold injection was developed to improve the performance and reduction of exhaust emissions. The engine performance, emissions, and combustion characteristics of the above system at constant speed were analyzed.