This report describes the progress and findings of a research program aimed at investigating the combustion characteristics of dry coal powder fueled diesel engine. During this program, significant achievements were made in overcoming many problems facing the coal-powder-fueled engine. The Thermal Ignition Combustion System (TICS) concept was used to enhance the combustion of coal powder fuel. The major coal-fueled engine test results and accomplishments are as follows: design, fabrication and engine testing of improved coal feed system for fumigation of coal powder to the intake air; design, fabrication and engine testing of the TICS chamber made from a superalloy material (Hastelloy X,6361 ); design, fabrication and engine testing of wear resistant chrome oxide ceramic coated piston rings and cylinder liner; lubrication system was improved to separate coal particles from the contaminated lubricating oil; control of the ignition timing of fumigated coal powder by utilizing exhaust gas recirculation (EGR) and variable TICS chamber temperature; coal-fueled engine testing was conducted in two configurations: dual fuel (with diesel pilot) and 100% coal-fueled engine without diesel pilot or heated intake air; cold starting of the 100% coal-powder-fueled engine with a glow plug; and coal-fueled-engine was operated from 800 to 1800 rpm speed and idle to full load engine conditions.