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Development, optimization and calibration of diesel engine parameters have become extremely complex, because the recent technology engines have too many parameters and their interactions, which play significant role in controlling emissions. To reduce development time and cost, a systems approach to engine optimization is possible through an effective Design of Experiment (DoE). Various steps were devised like setting measurable target quantity & customer demands, parameter evaluation & screening, fractional factorial - orthogonal array design, experimentation, evolving objective/merit function, analysis, determination of optimum combinations and success run for validation. A naturally aspirated DI diesel engine is optimized using DoE for optimum performance and minimum emissions.