Disclosed are a control device and a control method that are used with an internal combustion engine in which the air-fuel ratio in the vicinity of an ignition plug differs from the overall air-fuel ratio in a cylinder, and capable of properly fulfilling demands concerning various capabilities of the internal combustion engine by accurately reflecting each of the demands in the operation of each actuator. Three physical quantities, namely, a torque, an efficiency, and an air-fuel ratio, are used as controlled variables for the internal combustion engine. Target values for the controlled variables are then set by integrating at least some of demands concerning a capability of the internal combustion engine into the three physical quantities. Further, in accordance with the target values for the three controlled variables, namely, the torque, the efficiency, and the air-fuel ratio, three operation amounts, namely, an intake air amount adjustment valve opening, an ignition timing, and a fuel injection amount are set, and a fourth operation amount for adjusting the air-fuel ratio distribution in the cylinder is set.