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Dimethyl ether (DME) has been attracting notable attention as a clean alternative fuel for diesel engines. The authors developed a medium duty DME truck, and investigated aspects of vehicle performance such as engine power, exhaust characteristics, fuel consumption, noise, in-vehicle systems, and so on. Results indicated that higher engine torque and power could be achieved with DME compared to diesel fuel operation of the base engine at any engine speed. Results also showed that emissions decreased dramatically, to 27% for NOx, 74% for HC, 95% for CO and 94% for PM (Particulate Matter) compared to maximum allowed Japanese 2003 emission regulations. The operating noise of the DME vehicle was slightly lower than the base vehicle with diesel fuel, because the combustion noise with DME was decreased compared to with diesel fuel operation. The DME vehicle was given a public license plate in October 2004, after which running test continued on public roads and on a test course.