If it is a Spectrum, yes. If not, no. It is DCC compatible . No room in the boiler however. A friend put his decoder in the cab, mine is in the tender and I ran a jumper to the engine.
Rather than wiring the decoder to the engine you will wire a plug. Same goes for the tender. Take your time. It can get confusing. I was swearing like a trooper when I did mine, and I had an expert looking over my shoulder. Sure did appreciate the help, and the support.
I did not like being able to see the decoder and that was my reason for going the alternate route. Plugs can be found thru Walthers, and someone told me once that they got some at Radio Shack, but I"m not sure on that.