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The intensifying needs demanded by the legislation, shorter product development cycle and utmost attention given to durability aspects of product have surfaced out various complex technical areas in the field of engine out emissions, FIP hydraulics, computational fluid dynamics, thermal analysis and structural design of components. This paper is an endeavour to present the gesticulations used in one of the upgradation program for improving engine performance to meet desired emission and performance levels with the help of simulation tools and statistical database. The single cylinder air cooled D. I. engine under development is explored first for possible improvements in induction and exhaust systems, FIP performance and combustion package, valve train layout, cylinder head design, fin layout and pattern, features for improvement in oil consumption, modifications in engine block and crankcase etc.