The use of exhaust gas recirculation (EGR) for a spark-ignition engine was examined using a thermodynamic cycle simulation including the second law of thermodynamics. Both a cooled and an adiabatic EGR configuration were considered. The engine was a 5.7 liter, automotive engine operating from idle to wide open throttle, and up to 6000 rpm. First, the reduction of nitric oxides is quantified for the base case condition (bmep = 325 kPa, 1400 rpm, φ = 1.0 and MBT timing). Over 90% reduction of nitric oxides is obtained with about 18% EGR for the cooled configuration, and with about 26% EGR for the adiabatic configuration. For constant load and speed, the thermal efficiencies increase with increasing EGR for both configurations, and the results show that this increase is mainly due to decreasing pumping losses and decreasing heat losses. In addition, results from the second law of thermodynamics indicated an increase in the destruction of availability (exergy) during the combustion process as EGR levels increase for both configurations. The major reason for this increase in the destruction of availability was the decrease in the combustion temperatures. Complete results for the availability destruction are provided for both configurations.