The conventional diesel engine retarder is an add-on system that converts the power producing diesel engine into a power absorber by altering engine valve timing when vehicle retarding is desired. The retarding effect is achieved by releasing the compressed air charge near TDC compression to prevent energy from returning to the engine during expansion. Retarding performance is optimized only at one engine speed and the increased height due to the add-on approach is a disadvantage for some vehicle applications.This study introduces an integrated Variable Valve Timing (VVT) engine retarder (Figure 1) by applying the lost motion principle. The integrated retarding system has significant dimensional advantage over the conventional add-on engine retarder. The lost motion VVT retarder also provides optimized retarding performance over the entire engine operating range.