The ceramic insert concept far an uncooled, DI diesel engine was evaluated. Small improvements in fuel consumption were projected for this engine relative to a ceramic coated engine. A PSZ cylinder head plate, lip insert in the piston and above-the-rings cylinder liner operated successfully for short term tests after finite element analyses, Weibull failure analyses and iterative testing and design modifications. Heat loss was reduced 25% and the fuel consumption was improved 5 to 9% relative to a water-cooled engine. The combustion analysis parameters indicated that the ceramic insert engine provided higher in-cylinder temperatures relative to the ceramic coated engine.