Higher heat losses and brake specific fuel consumption are major problems in an indirect injection diesel engine, which can be overcome by means of low heat rejection concept. This concept is based on the approach of insulating of piston and liner of main chamber in an indirect injection engine. At the present work, the combustion process and emission formation in baseline and low heat rejection engines are studied by a computational fluid dynamics code at four different loads (25%, 50%, 75%, and 100%) in maximum torque engine speed of 730 rpm. The numerical results for the pressure in cylinder and emissions for baseline engine at full load operation are compared to the corresponding experimental data and show good agreement. The comparison of the results for two cases show that when the load increases from 25% to 100% in 25% steps, heat loss in low heat rejection engine decrease 40. 3%, 44.7%, 44.6%, and 45.2%, respectively. At full load operation in low heat rejection engine, NO x and soot emissions decrease 13.5% and 54.4%, respectively, and engine efficiency increases 6.3% in comparison to baseline engine.