Polyoxymethylene dimethyl ether 3 has been regarded as a promising additive for reducing soot emissions in diesel engines. To better reflect the physical and chemical properties and combustion, emission, and spray characteristics of a diesel/PODE 3 mixture, a new compact yet comprehensive diesel surrogate/PODE 3 chemical kinetic reaction mechanism including 446 reactions and 128 species was constructed. First, the detailed PODE 3 reaction mechanism was simplified using widely recognized mechanism-reduction approaches including direct relation graph with error propagation (DRGEP), isomer lumping, and sensitivity analysis. After each step, experimental results were applied as posterior constraints coupled into an iterative reduction procedure for mechanism validation. Further, the reduced PODE 3 mechanism was integrated into the compact diesel surrogate− PAH−NOx mechanism, and optimization was then performed for improving the fidelity and reliability. Finally, the developed diesel/PODE 3 mechanism was extensively verified with experimental data including fundamental combustion chemistry and homogeneous charge compression ignition (HCCI) for each fuel component. Results indicated that prediction of ignition delay times, laminar flame speeds, and intermediate species profiles using this reduced mechanism agreed well with the base experimental results, and the tendency of heat release rate (HRR) and in-cylinder pressure in HCCI combustion could be reasonably reproduced. This reduced mechanism is suitable and appropriate for 3-D computational fluid dynamics (CFD) studies.