  We report on observations of the Galactic supernova remnant (SNR)
G299.2$-$2.9 with the {\it Chandra X-Ray Observatory}. The high resolution
images with {\it Chandra} resolve the X-ray-bright knots, shell, and diffuse
emission extending beyond the bright shell. Interior to the X-ray shell is
faint diffuse emission occupying the central regions of the SNR.
Spatially-resolved spectroscopy indicates a large foreground absorption
($N_{\rm H}$ $\sim$ 3.5 $\times$ 10$^{21}$ cm$^{-2}$), which supports a
relatively distant location ($d$ $\sim$ 5 kpc) for the SNR. The blast wave is
encountering a highly inhomogeneous ambient medium with the densities ranging
over more than an order of magnitude ($n_0$ $\sim$ 0.1 $-$ 4 cm$^{-3}$).
Assuming the distance of $d$ $\sim$ 5 kpc, we derive a Sedov age of $\tau$
$\sim$ 4500 yr and an explosion energy of $E_0$ $\sim$ 1.6 $\times$ 10$^{50}$
ergs. The ambient density structure and the overall morphology suggest that
G299.2$-$2.9 may be a limb-brightened partial shell extending to $\sim$7 pc
radius surrounded by fainter emission extending beyond that to a radius of
$\sim$9 pc. This suggests the SNR exploded in a region of space where there is
a density gradient whose direction lies roughly along the line of sight. The
faint central region shows strong line emission from heavy elements of Si and
Fe, which is caused by the presence of the overabundant stellar ejecta there.
We find no evidence for stellar ejecta enriched in light elements of O and Ne.
The observed abundance structure of the metal-rich ejecta supports a Type Ia
origin for G299.2$-$2.9.
