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Study of DME diesel engines was conducted to improve fuel consumption and emissions of its. Additionally, DME trucks were built for the promotion and the road tests of these trucks were executed on EFV21 project. In this paper, results of diesel engine tests and DME truck driving tests are presented. As for DME diesel engines, the performance of a DME turbocharged diesel engine with LPL-EGR was evaluated and the influence of the compression ratio was also explored. As for DME trucks, a 100,000km road test was conducted on a DME light duty truck. After the road test, the engine was disassembled for investigation. Furthermore, two DME medium duty trucks have been developed and are now the undergoing practical road testing in each area of two transportation companies in Japan.