JIS SCM440M (SAE4140H), heat treated to the strength level of 120 to 140 kgf/mm2(171 to 199 ksi) -ISO 12.9 class-, is currently used for cylinder head bolts of Japanese passenger cars. Lower alloy steels, such as SAE 1541 for example, have not been substituted for JIS SCM440H so far because of their high susceptibility to delayed fracture. Daido Steel has tackled this problem and succeeded in applying the lower alloy SAE 1541 steel to 12.9 class cylinder head bolts by enhancing the resistance to delayed fracture by reducing impurities, especially sulphur. In this paper mechanical properties and delayed fracture characteristics of SAE 1541-ULS (Ultra Low Sulphur) steel are reported. 1541-ULS (S<0.005%, S+P< 0.020%) shows outstanding resistance to delayed fracture compared to conventional steel. Furthermore, the amount of MnS inclusions decreases remarkably in ULS steel, which results in high toughness. On the basis of these results, 1541-ULS steels have been used as cylinder head bolts of passenger cars.