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The new opoc™ diesel engine concept was presented at the SAE 2005 World Congress [1]. Exceptional power density of >1hp/lb and >40% efficiency have been predicted for the 2-stroke opoc™ diesel engine concept. Intensive CAE simulations have been performed during the concept and design phase in order to define the baseline scavenging and combustion parameters, such as port timing, turbocharger configuration and fuel injection nozzle design. Under a DARPA contract, first prototype engines have been built and have undergone a validation testing program. The main goal of the first testing phase was to demonstrate the power output capability of the new engine concept. In close relationship and interaction of testing and CAE simulation, the uniflow scavenging process and parameters of the special diesel direct side injection have been optimized. This paper discusses the latest results of the opoc engine development.