The HCCI engine is a prospective internal combustion engine with which high diesel-like efficiencies and very low NOx and particulate emissions can be achieved. However, several technical issues must be resolved before HCCI engines can be used for different applications. One of the issues concerning the HCCI engine is that the operating range of this engine is limited by the rapid pressure rise caused by the release of excessive heat. This heat release is because of the self-accelerated combustion reaction occurring in the engine and the resulting engine knock in the high-load region. The purpose of this study is to evaluate the role of thermal stratification and fuel stratification in reducing the pressure rise rate in an HCCI engine. The concentrations of NOx and CO in the exhaust gas are also evaluated to confirm combustion completeness and NOx emission. The computation is carried out with the help of a multizone code, by using the information on the detailed chemical kinetics and the effect of thermal and fuel stratification on the onset of ignition and rate of combustion. The engine is fueled with dimethyl ether (DME), which allows heat release to occur in two stages, as opposed to methane, which allows for heat release in a single stage.