To provide an intra-cylinder injection type two-cycle engine which can prevent irregular combustion, preclude drop of the rate of fuel consumption resulting from vibrations of an engine or emission of uncombusted fuel caused by a misfire, and avoid degradation of the exhaust gas properties.

A two-cycle engine 1 is configured so that the cylinder body 4 is equipped at the side wall with a scavenge port 13a in communication to a crank chamber 3a and an exhaust port 35a in communication to an exhaust passage 35, wherein an ignition plug 34 is installed on the cylinder head 5, and a fuel injection valve 14 is furnished to supply the fuel by direct injection into a combustion chamber (a) bounded by the cylinder head 5, cylinder body 4 and a piston 6. The exhaust passage 35 is equipped with an exhaust gas control valve 39 which can change the section area, and an ECU 70 (operation control means) is furnished to set the ignition timing advance angle when the degree of opening of the exhaust gas control valve 39 remains small to a greater value than the ignition timing advance angle when the degree of opening is large.