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In automotive industry it has been a challenge to retain diesel-like thermal efficiency while maintaining low emissions. Numerous studies have shown significant progress in achieving low emissions through the introduction of common-rail injection systems, multiple injections and exhaust gas recirculation and by using a high octane number fuel, like gasoline, to achieve adequate premixing. On the other hand, low temperature combustion strategies, like HCCI and PCCI, have also shown promising results in terms of reducing both NOx and soot emissions simultaneously. With the increasing capacity of computers, multi-dimensional CFD engine modeling enables a reasonably good prediction of combustion characteristics and pollutant emissions, which is the motivation behind the present research. The current research effort presents an optimization study of light-duty compression ignition engine performance, while meeting the emission regulation targets.