The purpose of this project is to develop an existing Ford engine in the laboratory to an automatic control and instrumentation system, which may provide better testing environment and facilities for obtaining accurate testing data. In this microcomputer-based data acquisition and control system, various electronic transducers and sensors are used as the instruments to produce electrical signal for interfacing into the computer. The feedback control loop in the algorithm of the program performed by the computer, enable the plant (engine) to be tested under carious performance condition i.e different speed and loading. The test-bed design criterion, process control, working pinciples of the various transducers and control elements used in this project are describe in separate chapters in this thesis and along with this, the interfacing techniques also discussed in detail. The transducers also have been calibrated for the interfacing purposes and beside of these a computer programming is also written by using Turbo C which includes the data acquisition and motor control functions that allow the closed loop control to be performed in this system.