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A new generation of Wankel rotary engines that can offer multifuel capability, increased fuel economy, and improved performance and reliability could have a profound influence on the design of future power plants for aircraft, automotive and other applications. The recent advances in adiabatic diesel engine technology have potential to improve the Wankel rotary engine. In this paper, the potential benefits of adiabatic Wankel engine and advanced concepts like- advanced turbochargers, high compression ratio, faster combustion, and reduced leakage have been assessed. A Wankel simulation model was used to predict performance of the adiabatic Wankel engine with these advanced concepts- predicting an overall improvement of 25.5% in ISFC and 34.5% in power output. Also, excellent multifuel capability of adiabatic Wankel engine is expected.