Engine cycle simulation using a two-zone model was performed to investigate the effect of the engine parameters on NO and soot emissions in a DI diesel engine. The present model was validated against measurements in terms of cylinder pressure, BMEP, NO emission data with a 2902cc turbocharger/intercooler DI diesel engine. Calculations were made for a wide range of the engine parameters, such as injection timing, ignition delay, Intake air pressure, inlet air temperature, compression ratio, EGR. This parametric study indicated that NO and soot emissions were effectively decreased by increasing intake air pressure, decreasing inlet air temperature and increasing compression ratio. By retarding injection timing, increasing ignition delay and applying EGR. NO emission was effectively reduced, but the soot emission was increased.