To improve the engine performance, this dissertation aims at developing a frameworkof engine control and optimisation. The engine control algorithm has to be developedto fully utilise the technical advances in sensors. The engine control technologies onthe market today have been conservatively designed for safety and reliability concerns.This strategy sacrifices the peak efficiency of the engine for the safety margin of operation.The current dissertation proposes online optimization for engine control. Theobjective is to include continuos real time engine tuning while maintaining its safetyand reliability.To understand why the engine controller is a key apparatus to more efficient engineoperation, the basic internal combustion engine theory is presented in the thesis. Thestate of the art and advanced engine control technologies are described in this thesis tooutline the research challenge.The main objective of this research is to develop a framework for engine control andoptimization. The main tasks are engine control optimization and engine controllerdesign. To achieve the objective, a novel control system concept is proposed. Theadvancement in sensor technology allows production of low cost torque sensor whichopens up an area for torque sensor feedback control.The concept was tested in simulation and the result shows improvement of 5% to 10%in engine efficiency. It was further being implemented into a rapid prototype for enginedynamometertesting. The experimental result shows similar improvement in engineefficiency of 2% to 7%.