Almost all automobiles in the world are emitting a huge amount of exhaust gases to the atmosphere every day. These exhaust gas contains harmful substances like carbon monoxide, oxides of nitrogen, hydrocarbons, and other toxic substances. If these substances go on increasing they will cause several diseases like blood circulatory problem, lung diseases, bronchitis, blood cancer, etc. Also they may cause different environmental problems like acid rain, green house effect, etc. So, the emission of these substances should be controlled as far as possible. This project work presents a new catalytic converter to be used for compressed ignition engine. The catalytic converter is developed based on the catalyst materials consisting of metal oxides such as aluminum oxide and cerium oxide coated with wire mesh filter. Both the catalyst materials - aluminum oxide and cerium oxide are inexpensive in comparison with conventional catalysts such as palladium or platinum. The main objective of this work is to control the NOx, CO emission and to develop a low-cost three way catalytic converter. This catalytic converter is assembled in the exhaust manifold region of a computerized single cylinder four stroke diesel engine.