This paper investigates the difference between the traditional diffusion combustion and hot premix film type combustion on improvement of compression ignition engine performance in all respects. The first part of this paper mainly describes the heat release, air fuel mixing, swirl flow and squish flow and also film formation on diffusion combustion.The second part of this paper describes the development of hot premix combustion, its feasibility and guiding principles. The main purpose of this part is to demonstrate three main measures which should be taken in carrying out premix film formation combustion. The first means is air flow guide ring. The second is film formation process and the third is fine particles fuel injectors: one is supermultiple holes injector and the second is conical spray fuel injector. The most important character of premix combustion lies in that the air fuel perfectly mixing before TDC, ignition occuring after TDC and forming a pretty fast combustion rate, gives advantages in every respect.