The torque is an important measure that represents the performance of a particular engine. Furthermore the information of engine torque can be used as a primary feedback parameter in modem engine management system. In this paper, a methodology is proposed for torque estimation of SI-engine. Since the proposed method uses cylinder pressure sensor, the torque can be estimated in a simple manner. The indicated torque is estimated from the peak pressure and its location, and the load torque is observed by the state observer based on the estimated indicated torque. The proposed method is accurate and robust against the variations that affect the torque production such as spark timing, mass air flow and others. This torque estimation method may be an alternative solution to the use of engine torque maps in a modem torque-based engine management system.