When a problem arises with the engine of a BMW, the service light indicator will light up at the dashboard. In order to get rid of the service light indicator on a BMW E46, a reset tool is mandatory. You will need to use the Service Light Plus airbag reset tool to reset the light on the BMW. The reset tool is made to work specifically on BMWs and it is found at most auto parts shops.
Attach the tool to the data link connector, located under the BMW's dashboard.
Switch on the BMW's ignition.
Watch for the screen on the tool to illuminate and select "BMW" using the scroll buttons on the tool and then push the reset tool's "OK" button.
Select the "E46" model with the scroll buttons and push the "OK" button.
Select "Reset of Service Warning Light" with the scroll buttons and push the "OK" button.
Anticipate for screen to read "Reset OK!"
Switch off the BMW E46's ignition and remove the tool from the vehicle.