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Honda has developed a new hybrid system targeting the C and D segments that aims for the latest environmental performance, high fuel economy, and enhanced acceleration feeling in driving. The new engine to be applied to this new hybrid system has been developed with the goal of expanding the high thermal efficiency range, realizing the latest environmental performance, and high quietness. The new engine has adopted the Atkinson cycle and cooled exhaust gas recirculation (EGR) carried over from the previous model [1], and employed an in-cylinder direct fuel injection system with fuel injection pressure of 35 MPa. The combustion chamber and ports have been newly designed to match the fuel system changes. By realizing high-speed combustion, the engine realized a high compression ratio with the mechanical compression ratio of 13.9.