Conventional two-stroke engines have defects such as unstable combustion, high fuel consumption rate and high HC emissions. In order to overcome the defects, a direct fuel injection system and a novel scavenging system were adopted. The authors tested a newly developed reverse uniflow-type two-stroke direct injection gasoline engine that was designed by numerical simulations. In comparison with the base engine at low engine speed, HC emission was decreased by up to 80%, and BSFC was reduced by around 40%. Power and BSFC were superior to those of a latest port-injection four-stroke engine. Furthermore, it was found that engine performance of exhaust gas emissions, fuel economy or output power can be selectively optimized by switching homogeneous and stratified combustion.