The paper presents a layout of a highly boosted Ethanol Direct Injected (EDI) engine with extreme downsizing, which represents a powerful means to reduce emissions at reduced production costs. The substitution of high-displacement engines (2.4- or 3.0-liter) by a downsized turbocharged EDI-engine is studied. The paper describes the detailed layout of all engine hardware and in particular, the cylinder head structure including the optimized intake and exhaust manifolds as well as implemented DI injectors. The paper continues with a presentation of the experimental data obtained at the engine test rig. The paper concludes presenting a series of experimental data obtained with the downsized engine mounted in a car as a replacement for its original high-displacement engine.