Today the whole world is in search of alternative fuel, to fulfill the need of fossil fuel because in coming years there will be scarcity of fossil fuel. There are couples of option of alternative fuel such as solar power, tidal power, geo-thermal power, etc. and one of them is Compressed Air. The important condition for the alternative fuel is it should be renewable and eco-friendly. In India only 52.5% of rural house have access to electricity and 93.1% in urban house. Overall 35.5% of total Indian population doesn’t have electricity access to their home. Compressed Air Engine is a better option to produce power to run automobile, generators etc. it does not required any of the known fossil fuels like petrol, diesel, CNG, LPG, hydrogen etc. this works using only compressed air. It works on high pressure air and hence is pollution free and 100% eco-friendly.