To correspond to the social requirements such as energy security, and climate change, enhancing engine thermal efficiency is strongly required in these days. As for the specific engine technologies to improve engine thermal efficiency, Atkinson cycle, cooled EGR (Exhaust Gas Recirculation), and low friction technologies have been developed [1, 2, 3, 4]. As a result, the current maximum thermal efficiency comes close to 40%. However, since it is considered that much higher engine thermal efficiency is required in the future to meet more stringent social requirements, a new prototype L4 engine which features a long stroke design with a high tumble is investigated to clarify the future direction in this paper. In regard to combustion, the lean boosted concept with cooled EGR is examined. In consequence, it is shown that more than 45% engine thermal efficiency can be achieved. This paper describes the means to enhance engine thermal efficiency and a future possibility.