SUMMARYIn this paper, we continue to study the entropy dissipation scheme developed in former. We start with a numerical study of the scheme without the entropy dissipation term on the linear advection equation, which shows that the scheme is stable and numerical dissipation and numerical dispersion free for smooth solutions. However, the numerical results for discontinuous solutions show nonlinear instabilities near jump discontinuities. This is because the scheme enforces two related conservation properties in the computation. With this study, we design a so‐called ‘minimums‐increase‐and‐maximums‐decrease’ slope limiter in the reconstruction step of the scheme and delete the entropy dissipation in the linear fields and reduce the entropy dissipation terms in the nonlinear fields. Numerical experiments show improvements of the designed scheme compared with the results presented in former. However, the minimums‐increase‐and‐maximums‐decrease limiter is still not perfect yet, and better slope limiters are still sought. Copyright © 2011 John Wiley & Sons, Ltd.