Turbocharger has been widely used in many passenger cars in application with diesel engines because of high power and fuel efficiency. However, flow-induced noise (whoosh or hissing noise) which is generated within a compressor during its operation at marginal surge line can deteriorate noise characteristics. Hissing noise excitation is associated with the generation of turbulence within the turbocharger compressor and radiated through the transmission path in a turbocharger system. In this study, a expansion muffler with lids is devised and installed in the transmission path to reduce the hissing noise. Acoustic and fluid dynamic characteristics for the muffler are investigated which are related to the unsteadiness of turbulence and pressure in the turbocharger system. A transfer matrix method is used to analyze the transmission loss of the muffler. A simple expansion muffler with lids is proposed for the reduction of high frequency component noise. Turbulence simulation is carried out by a standard k - ${varepsilon}$ model. An optimal design condition of the muffler is obtained by extensive acoustic and fluid dynamic analysis on the engine dynamometer with anechoic chamber. A significant reduction of the hissing noise is achieved at the optimal design of the muffler as compared with the conventional muffler.