Abstract: A further improved compact reversing flow catalytic converter with protection from overheating includes an improved valve unit which directs exhaust gases through a container filled with catalytic material to permit a bypass of catalytic material when a temperature of the material exceeds a predetermined threshold. The container defines a U-shaped gas passage that communicates with two chambers at the top of the container. The improved valve unit is mounted to the top of the container and includes two container chamber extension cavities, an improved intake cavity and an improved exhaust cavity. The improved valve unit includes an improved valve flapper and two conjoined valve walls each wall with two openings therethrough. The improved valve flapper rotates around normal central axis between a first, a second and third positions.