This paper mainly deals with the harmful emission control problem of the diesel engine. Many research works have been carried out on the catalytic conversion of diesel emissions. First, a few kinds of catalyst are prepared, selected by Thermogravimetric Analysis (TGA) and Differential Thermal Analysis (DTA). Three types of catalytic converter are developed. Engine bench tests on these converters loaded with selected catalysts are made. Testing contents are: (1) conversion rate of harmful gases; (2) reduction effect of exhaust smoke; (3) resistant performance of converters and their influences on the engine, etc. Finally, through comparison, the effective catalytic converter is installed on a folklift truck for testing and durability examination. Testing results show that the catalytic converter has higher conversion rate on gaseous emissions, especially for CO and NOx. After two months running, the conversion rates basically keep the original level. Otherwise, because of special considerations in the converter structure design, it shows some effects on the reduction of diesel exhaust smoke and noise. So it can meet with the special needs of the folklift truck working in closed area, such as ship depository.