Recently, the regulations from the govemment and the concems of the people give rise to the interest in exhaust noise of passenger car as much as other vehicles. The exact analysis of various mufflers is needed to reduce the level of exhaust noise. In this paper, we propose a design to improve the mufflers capacity by reducing noise of exhaust system combining Taguchi method and fractional factorial design. In order to measure the performance of a muffler, the performance prediction software which is developed by the Dept. of Automotive Engineering at Hanyang University is used. From the current muffler system we select control factors such as lenght and radius of each component that are thought to be effective on capacity of muffler. Factors are arranged using L18, L27 table of orthogonal array and the fractional factorial design for analysis. We find some significant interaction effects using 1/3 fractional factorial design and accomplish the reduction of noise from the muffler.