The aim of this paper is to optimize the input parameters of diesel engine with respect to hydrocarbon emission and smoke opacity through experimentation and Taguchi approach. Four parameters, namely, compression ratio, fuel injection timing, air temperature, and air pressure were varied at five different levels and their effect on hydrocarbon emission and smoke opacity under no load, half load, and full load conditions were recorded. The optimum combination of control/input parameters leading to the optimum values of performance parameters/response variables, were determined using signal-to-noise ratio, analysis of means, and analysis of variance. Confirmation tests were performed to check the validity of the results, which revealed good agreement between the predicted and the experimental values of the response variables at optimum combination of the input parameters.