A method for reducing friction loss in the engine timing chain was investigated using multi-body dynamics simulation. The method known as the link-by-link model was employed in the simulation to enable representation of the behavior of each single link of the chain and its friction due to contact. In order to predict the friction under actual engine operating conditions, a model that takes camshaft torque fluctuation and crankshaft rotational speed fluctuation into account was created. This simulation was used to verify the detailed distribution of friction in each part of the chain system as well as the changes of friction in the time domain. As a result, it was found that the sliding friction in the chain tensioner guide and chain guide was larger than in other locations. Based on this result, a method of reducing friction entirely by measures in mechanisms and structures without relying on low-friction materials was investigated. Simulation was used to verify the predicted effects of these measures, with the result that reducing the moment of inertia of the camshaft and reducing the initial load on the chain tensioner were confirmed to reduce friction loss.