Compressed air as a source of energy in different uses in general and as a nonpolluting fuel in compressed air vehicles has attracted scientists and engineers for centuries. Efforts are being made by many developers and manufacturers to master the compressed air vehicle technology in all respects for its earliest use by the mankind. The present paper gives a brief introduction to the latest developments of a compressed-air vehicle along with an introduction to various problems associated with the technology and their solution. While developing of compressed air vehicle, control of compressed air parameters like temperature, energy density, requirement of input power, energy release and emission control have to be mastered for the development of a safe, light and cost effective compressed air vehicle in near future.