This paper deals with the experimental investigation carried out to study the effect of expansion ratio (ER) on the brake thermal efficiency of a spark ignition ( S.I. ) engine. Intake valve closure timing (IVCT) and clearance volume have been suitably altered to achieve different ERs and compression ratios (CRs). For the modified engines the ratio of ER to CR ranges from 1:1 to 2.27:1, for CRs of 6,7, and 8:1. The results have been compared with the standard version of the engine with compression ratio of 7 and 8:1.Brake thermal efficiency improvement up to 35% has been achieved with a combination of variable IVCT (VIVCT) and variable CR (VCR) at part - load operation. Results show that in this system CR can be lowered without penalizing the thermal efficiency of the engine. Results indicate that the thermal efficiency of an Extended Expansion Engine with a CR of 6:1 and ER/CR equal to 1.5 is equal to the thermal efficiency of a standard engine with a CR of 8:1. Pumping loss is considerably reduced at lower power outputs. Pumping losses at lower outputs can be made equal to the loss at WOT operation of a standard engine.