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The Diesel engine and especially the direct injection type one is considered to be one of the most efficient thermal engines known to man up to now. It has an efficiency that in some cases is 30 to 40% higher than its competitor the spark ignition engine. The efficiency of the direct injection diesel engine has been considerably improved during the last decade resulting to low fuel consumption and lower absolute values of pollutant emissions. If we consider the green house effect caused by the emitted CO2 it is revealed the environmental importance of high engine efficiency. In the present work a theoretical investigation is conducted using a detailed simulation model for engine performance prediction, to examine the possibilities for improving engine efficiency. The simulation model used is a complete open cycle model for the engine and its subsystems. Such phenomenological models are very suitable for the prediction of engine performance.