This paper discusses the goals, progress, and future plans of the TACOM/Cummins Adiabatic Engine Program. The Adiabatic Engine concept insulates the diesel combustion chamber with high temperature materials to allow hot operation near an adiabatic operation condition. Additional power and improved efficiency derived from this concept occur because thermal energy, normally lost to the cooling and exhaust systems, is converted to useful power through the use of turbomachinery and high-temperature materials. Engine testing has repeatedly demonstrated the Adiabatic Engine to be the most fuel efficient engine in the world with multi-cylinder engine performance levels of 0.285 LB/BHP-HR (48% thermal efficiency) at 450 HP representative. Installation of an early version of the Adiabatic Engine within a military 5 ton truck has been completed, with initial vehicle evaluation successfully accomplished. Design and procurement of long lead time items for the next generation of Adiabatic Engine in the 600-750 HP power range is continuing. Work on the minimum-friction Adiabatic Engine version continues.