A newly developed surface hardening process, supercarburizing, has been developed for the application of tappet shim to improve fuel economy. Supercarburizing has been introduced to increase resistance of wear and pitting performance and was designed to have supersaturated carbon surface layer and further to have spheroidized carbide morphology. In this presentation, the process variables, such as surface microstructure, morphology and distribution of carbide precipitation, will be discussed via the results of friction loss tests. At an entire speed range investigated, the application of supercarburized tappet shim improved fuel economy with 25∼30% in terms of valve train itself and with 4∼5% concerning on the gross engine performance. The fuel economy analysis showed that the improved surface hardening process of tappet shim increased fuel economy of vehicle about 1.4∼3.6%.