In recent years, more attentions have been paid to stringent legislation on fuel and emissions. Turbocharged downsizing DI engine is playing an increasing vital role in OEM’s powertrain strategies. Dongfeng Motor (DFM) has developed a new type of 1.0-liter 3 cylinder TGDI gasoline engine to meet the requirements of China 4th stage fuel consumption regulations and the China 6 emission standards. In this paper, the concepts of DFM 3-cylinder 1.0TGDI gasoline engine are explored to meet the powerful performance (torque 190Nm/1500-4500rpm and power 95kW/5500rpm), excellent part-load BSFC and NVH targets to ensure the drivers could enjoy the powerful output in quiet and comfortable environment without concerning about the fuel cost and pollution. The combustion system with side-mounted 6-hole direct injector and 200bar injection pressure has been optimized by CFD simulation and transparent engine investigation. To ensure performance output and transient responsiveness, an efficient and low inertia turbocharger was mated. An effective technical matrixes including friction reducing, thermal management, variable oil pump and DVVT were defined to achieve the challenging fuel economy target. Special attentions have been paid to the engine structure design, balancing strategy and mounting system optimizing to achieve excellent NVH behavior same as 4-cylinder engine. Due to the modular design, the engine size was minimized which has the advantage of smaller size for carrying, especially for hybrid vehicles. Based on the development, the engine targets were realized and confirmed by engine and vehicle tests. This engine has been installed in one of the passenger cars (1205 to 1320kg) and 18% fuel consumption reduction was achieved in the NEDC cycle compared to 1.6L NA engine while maintaining fun-to-drive and NVH performance.