Numerical calculation based on finite element method are carried out to calculate the temperature field in an adiabatic diesel engine piston having diameter. 127 mm and made of aluminum alloy. The engine cylinder wall have the coated externally by a thin layer of very high grade ceramic insulating material. The isothermic distribution in the piston body and the heat flow rates to the cooling media at different loads have been depicted for both cases with and without insulation coating. The paper first reviews the current state of development of ‘adiabatic’ diesel engine in Europe, U.S.A and the Japan. This review section is followed by a brief description of the common element of hostile features, then comes the experimental program on thermally insulated components for single cylinder engine in the research center of Tabriz and finally by a theoretical section dealing with the performance potential of composed engine schemes based on ‘adiabatic’ engine operation.