An innovative reactor core concept applying spectral shift rods (SSRs) is proposed to improve the plant economy and the operability of the 1700-MW(electric) Advanced Boiling Water Reactor II (ABWR-II). The SSR is a new type of water rod in which a water level is naturally developed during operation and changed according to the coolant flow rate through the channel. By taking advantage of the large size of the ABWR-II bundle, the enhanced spectral shift operation by eight SSRs allows operation of the ABWR-II with all control rods withdrawn. In addition, the uranium-saving factor of 6 to 7% relative to the reference ABWR-II core with conventional water rods can be expected due to the greater effect of spectral shift. The combination of these advantages means the ABWR-II with SSRs should be an attractive alternative for the next-generation nuclear reactor.