Numerical analysis of dynamic contact and stress developing in the high-speed driven valve of an internal combustion engine is presented. The valve is modeled by finite element techniques, and the dynamic contact between the valve and the valve seat is analyzed by the solution strategies of differential algebraic equations. Also an iterative scheme similar to the augmented Lagrange multiplier method is employed to enforce the contact constraints. It is shown that the contact and separation between the valve and the valve seat can be computed by the finite element techniques without assuming the artificial springs, and the efficiency and accuracy of the solution are demonstrated by the numerical examples.