This study is to develop the diesel engine which has 6 cylinder natural aspiration direct injection type of 7.4$ell$ with high performance, low emissions and low fuel consumption Finally the developed engine meets Korean `98 exhaust emission regulation for the city bus of heavy duty diesel engine by optimizing the various combustion parameters affecting performance and exhaust emissions. Combustion parameters are the swirl ratio of intake ports, the profile of injection pump`s cam affecting injection pressure, the design features of piston bowl of injection pump`s cam affecting injection pressure, the design features of piston bowl of combustion chamber and injector`s hole size. Through experimental analysis, various combustion parameters are optimized and the results are as follows; the swirl ratio is 2.20, the profile of injection pump`s cam is concave and re-entrant ratio, inner diameter of piston bowl and hole diameter of injector is 0.88,$psi$64.0mm and $psi$0.25mm respectively.