Natural gas is one of clean fuels that can replace petroleum-based fuels, because it has low exhaust emission, comparatively high thermal efficiency and abundant deposits. In this addition, owing to high octane number and wide lean flammability limit, it has a strong point to increase the compression ratio. For this reason, the research is being actively executed to increase the generating power and thermal efficiency of the engine by raising the compression ratio through utilization of high octane number relevant to development of CNG engine. In this study, 0.63L single cylinder diesel engine has been used to alter easily compression ratio. Compression ratio has gotten under control by modifying the thickness of gasket between cylinder head and block without major structural modifications. As the result, as compression ratio has increased, generating power and fuel consumption ratio have been improved. As for emission concentration, as compression ratio has increased, THC concentration has been decreased while exhause concentration of NOx increased. In case compression ratio has excessively increased, brake output decrease and cycle variation have been increased. As the result acquired by analyzing brake output, fuel consumption ratio, cycle variation and exhaust, the engine driving condition has acquired $varepsilon=13$ as the optimal compression ratio in this study