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. In addition, emission during engine start was suppressed by split injection and optimization of the injection timing to comply with the Super Ultra-Low Emission Vehicle (SULEV) regulations. The higher compression ratio and high-speed combustion increased the engine noise and vibration, and the high-pressure direct fuel injection system has generated larger operating noise than the conventional fuel injection system. Therefore, the crankshaft, cylinder block, oil pan, chain case, and other parts of the new engine have been newly designed to provide enhanced noise and vibration (NV) performance. Furthermore, the conventional acoustic insulators and Theta Fiber Cells (TFC) insulators that have sound absorption effects inside the engine room have been also redesigned. This achieved engine radiation noise equivalent to the previous model, and also contributed to enhancement of the vehicle quietness.