The objective of this project was to develop, demonstrate, and evaluate commercialization of a highly efficient downsized engine by electrification of the air delivery and waste heat recovery system and optimizing energy usage to achieve significant fuel economy improvement at a commercially viable cost. The system consists of an Electrically Assisted Variable speed Supercharger (EAVS), driven by an electric motor and the engine through a planetary gear train, that provides engine boost pressure and provides the mild hybrid functions of engine start/stop, torque assist, and brake energy recovery. In the exhaust path of the engine is the electric Waste Heat Recovery (eWHR) system, a roots-based expander driven by another electric motor, that enables exhaust gas energy recovery along with controlled back pressure on the engine. The two electric motors are powered by a 48V rechargeable lithium-ion battery. Further, the EAVS system coupled to an EGR valve enables very precise high exhaust recirculation rates to control the NOx emissions. Through two budget periods, the project team of Eaton, Isuzu, Southwest Research Institute and AVL designed and developed the EAVS and eWHR systems, integrated with an Isuzu diesel engine, and validated the target fuel economy performance and emissions by engine dynamometer testing and vehicle level simulations. GT Power model-based analyses results were used to size the EAVS and eWHR systems for the 1.9L Isuzu Spark engine. The two systems were built and the functional testing was carried out to verify the boosting performance of the superchargers. Following the baseline engine dynamometer testing, the two systems were integrated with the engine and the fuel economy performance and emissions were determined by combined steady state and transient testing over three drive cycles, namely, FTP75, NEDC and HWFET. The EAVS/eWHR system demonstrated 4% improvement in fuel economy for the NEDC cycle in engine dyno testing, correlating well with vehicle simulation results (5.3%). The simulation results indicated that the combination of hybrid functions and drivetrain optimization, fuel economy improvement of more than 20% was feasible with the system. The commercialization study to evaluate the cost of the system and the scalability for different engine/vehicle classes was planned for the final budget period but not completed as the project was closed at the end of budget period two.