This is a preliminary work for the development of a stratified combustion engine using liquefied petroleum gas(LPG) as an alternative fuel. The main objective of this research is to find out the optimizing engine parameters from the viewpoint of mixture formation with the aid of simulation, where the KIVA_ code was used. The combustion characteristics of LPG and gasoline are different because of their different physical properties. Therefore, the numerical simulation was performed for optimizing engine parameters by changing the piston and cylinder geometry, as well as injection conditions. Result showed that geometry of combustion chamber has a great influence on mixture stratification. Also, weaker swirl seems to be better for mixture formation in the vicinity of the spark plug.