The demand for the economy due to scarcity of fuel and increased engine performance with less emission will lead to the high level complexity in engine control system. The important factors which affect fuel economy and engine performance are ignition timing and fuel induction. Primitive engines had mechanical system for ignition advancing and retarding. These mechanical systems had their own limitations which are inefficient and unfriendly to the environment. Therefore need of system which has precise adjustment of ignition timing become inevitable. This project focuses on the modeling, developing of electronic ignition system and also the implementation using MC09S12XDT512 Freescale microcontroller. A concept verification of Electronic Ignition control algorithm is simulated using the MATLAB simulink and the Hardware In Loop (HIL) testing is done using dSPACE for ignition angle determination. The microcontroller based ignition system is implemented using the core MC09S12XDT512. The microcontroller produces PWM pulse output based on signals from intake manifold pressure sensor, crankshaft position (speed) sensor and synchronization sensor, which is used to drive the spark plug. The ignition angle is adapted depending on speed and load of the engine. This precise ignition control will result the less emission and better fuel economy. © Copyright 2009 SAE International.