Ummm no. The 2006 325i sedans (E90) used the N52 engine, which is completely different from your M54 engine.
Originally Posted by Tin Alley
Thanks for the reply. Just wanting to make sure that any 01-06 325i 2.5 motor will work. Planning on buying a wrecked one next week to use for the swap.
Get a 2.5 liter engine (M54 B25) from one of the following:
2001 to 2005 325i sedan (E46)
2001 to 2006 325i coupé (E46)
2001 to 2003 525i sedan (E39)
E46, E83, E90 (all with three pedals)
BMW CCA member