Abstract: The profit and cost of engine remanufacturing is widely concerned by both industry and academia and study is conducted for this problem in the viewpoint of reverse supply chain in this paper. First, a model is developed for profitcost analysis of engine remanufacturing in reverse supply chain. Then, quantitative and qualitative analysis methods are presented to show the factors that have significant impact on the profit and cost and how these factors influence the profit and cost. Also, sensitive analysis is done. Based on the analysis results, suggestions are made for how auto industry should do to improve engine remanufacturing in China.