A dual-compression, dual-expansion engine concept utilizing thermal insulation, piston compressors and expanders is presented and analyzed to determine the potential for improved efficiency and performance. The engine design takes advantage of the ability to separate and optimize the different processes occurring in the cycle and to recover energy that otherwise would have been lost. Gains of approximately 10% over the baseline modern turbodiesel engine were realized at mid- to high loads due to more efficient pumping, expansion and heat transfer improvements. At low loads, the increased friction of the piston dual-compression, dual-expansion concept hurt the efficiency in comparison to the baseline.