After reviewing the present state of diesel engine design art as applied to vehicle applications, the paper analyzes future application requirements and outlines possible paths of engine development. In general, future requirements demand engines of higher output, lighter weight, better fuel economy, and smoke-free operation. A better understanding of vehicle load demands and careful matching of engine and drive-line will be required. Reference to extensive recent research developments shows that the diesel engine industry will be prepared to meet this challenge to provide the customer the best possible engine in terms of return on his investment.