The compression, combustion, and expansion portions of a two-stroke cycle, direct methanol injection engine was simulated using the CONCHAS-Spray computer code. The input and comparison data was supplied from a Detroit Diesel Allison production engine operating on methanol fuel. Calculated values of both cranking and firing chamber pressure were lower than reported from the engine. The injected fuel did not entirely evaporate which caused regions of fuel impinging on the cylinder walls and piston face. The simulation did predict the formation and accumulation of formaldehyde in the regions of unburned fuel and is consistent with the theory that the formaldehyde does not readily decompose at low temperatures and forms from the incomplete oxidation of the fuel.