The concept of camless engines enables us to optimize the overall engine efficiency and performance, as it provides great flexibility in valve timing and valve displacement. This paper deals with design of camless engines with pneumatic actuator. The main objective is to build a prototype and test its performance at different engine speeds. Also an extensive research on the sensors is done to detect the various sensors that could be used to identify the crankshaft position. Here the features and advantages over conventional engines are discussed. In addition the overview of the camless system in the engine is focused along with the design principle and the components used. The system thus designed is capable of actuating at 1500 rpm and demonstrates the ability of pneumatic actuators to be used in an internal combustion engine with low rpm needs.