A rapid compression-expansion machine which can simulate the combustion processes in diesel engines is developed. The configuration of the combustion chamber is a 100 mm bore and a 90 mm stroke, and the compression ratio is 15. The piston is driven by an electro-hydraulic system with a thrust of 90 kN and the maximum frequency of 20 Hz. The whole system composed of a hydraulic actuator, a fuel injection system, and a valve driving unit is sequentially controlled by a computer. The reproducibility of the stop position of the piston at the end of compression is achieved with an accuracy of ±0.1 mm by employing a hydraulic-mechanical brake mechanism. The experiment shows that the combustion in the expansion stroke is achieved, and that the combustion characteristics such as the rate of heat release and indicated output as well as the exhaust emission can be measured.