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Copper ion-exchanged ZSM-5 zeolite catalyst, which reduces nitrogen oxides (NOx) in the presence of oxygen and hydrocarbons, was applied to actual diesel engine exhaust. Copper ion-exchanged ZSM-5 zeolite effectively reduced NOx by 25% in normal engine operation, and by 80% when hydrocarbons in the exhaust were increased. Water in the exhaust gas decreased the NOx reduction efficiency, but oxygen and sulfur appeared to have only a small effect. Maximum NOx reduction was observed at 400°C irrespective of hydrocarbon species, and did not decrease with space velocity up to values of 20,000 1/h. THE PURPOSE of this paper is to evaluate the possibilities and problems in catalytic reduction of NOx in actual diesel engine exhaust. Here, a copper ion-exchanged ZSM-5 zeolite (Cu-Z) catalyst was applied to diesel engine exhaust to examine the dependency of the NOx reduction efficiency on temperature and space velocity. The effects of oxygen, water and hydrocarbons were also examined.