Abstract: Research on decreasing consumption of energy, levels of exhaust, vibration and noisiness can provide a basis for improving engine performance; however, more exact, convenient and efficient methods must be used to measure an engine's working properties. Laser Measurement Technology (LMT), as an advanced science and technology, has been developing rapidly in the past decade. LMT provides high density energy with accurate directionality and coherency, which can measure and analyze variant properties of combustion engines, such as flow rate, fuel spray characteristcs, temperature of flow field, concentration of spray and level of exhaust. The principle methods of LMT were described; the status of LMT development and the prospects of application in engine research were also discussed in the paper.