The combustion characteristics of an opposed-piston two-stroke gasoline engine are investigated with experiment. The energy conversion and exergy destruction are analyzed and the organization method of the combustion process is summarized. The effects of phase difference, scavenging pressure, injection timing, ignition timing, and dual spark plug ignition scheme on the combustion process and engine performance are discussed, respectively. The heat release rate of the opposed-piston two-stroke gasoline engine is consistent with the conventional gasoline engine. With the increase of opposed-piston motion phase difference, the scavenging efficiency decreases and overmuch residual exhaust gas is not beneficial to the combustion process. Meanwhile, the faster relative velocity of the opposed-piston near the inner dead center enhances the cylinder working volume change rate, which leads to the rapid decline of in-cylinder pressure and temperature. The 15 °CA of opposed-piston motion phase difference improves the scavenging and combustion process effectively. When scavenging pressure is 0.12 MPa, the scavenging efficiency and heat release rate are improved at medium-high speed conditions. With the delay of injection timing, the flame developing period decreases gradually, and the rapid burning period decreases and then increases. The rapid burning period may reach the minimum value when the injection advance angle is 100 °CA. With the delay of ignition timing, the flame developing period increases gradually, and the rapid combustion period decreases and then increases. The rapid combustion period may reach the minimum value when the ignition advance angle is 20 °CA. Notably, the flat-top piston structure should be matched with the dual spark plug, which the ignition advance angle is 20 °CA at medium-high load conditions.