Exhaust system is composed of several parts. Among, them , design of muffler system strongly influences on engine efficiency and noise reduction. So , through comprehension of flow characteristics inside muffler is necessary . In this study , three-dimensional steady and unsteady compressible flow analysis was performed to understand the flow characteristics, pressure loss and amplitude variation of pulsating pressure. The computational grid generation was carried out using commercial preprocessor ICEM CFD/CAE. And the three-dimensional fluid motion inside the muffler was analyzed by STAR-CD, the computational fluid dynamics code. RNG k-$varepsilon$ tubulence model was applied to consider the complexity of the geometry and fluid motion. The steady and unsteady flow field inside muffler such as velocity distribution, pulsating pressure and pressure loss was examined. In case of unsteady state analysis, velocity of inlet region was converted from measured pulsating pressure. Experimental measurement of pressure and temperature was carried out to provide the boundary and initial condition for computational study under three engine operating conditions. As a result of this study, we could identify the flow characteristics inside the muffler and obtain the pressure loss, amplitude variation of pulsating exhaust gas.