Numerical prediction of the pollutant dispersion over a two-dimensional hilly terrain is presented. The dispersion model used in the present work is based on the gradient diffusion theory and the finite-volume method on a non-orthogonal boundary-fitted grid system. The numerical model is validated by comparing the results with the available experimental data for the flat-floor dispersion within a turbulent boundary-layer. The numerical error analysis is performed based on the guideline of Kasibhatla et al.(1988) for the elevated-source dispersion in the flat-floor boundary layer having a power-law velocity and linear eddy-diffusivity profile. The influences of the two-dimensional hilly terrain on the dispersion from a continuously released source are numerically investigated by changing the emission locations and heights. It is found that the distributions of ground-level concentration are strongly influenced by the source location and the emission height. Hence, the terrain amplification factor is greatly enhanced when the pollutant source is located within a flow separation region. Dispersion from a source of short duration is also simulated and the duration time of the pollutant is compared at several downstream locations on a hilly terrain. The results of the numerical prediction are applied to the evaluation of environmental impacts due to the automobile exhausts at the seashore highway with a parallel mountain range.