Engine Block, being the most vital component requires serving various functions all together. Design of block for higher power densities and BMEP levels, needs a complete change in the design strategy compared to the existing design approach. Also, balancing other factors like engine cooling efficiency, blow by targets, weight, and manufacturing cost becomes a huge challenge upfront in designing an engine block.Design of block is carried out within several design, assembly and manufacturing constraints such as to maintain a specific cylinder centre distance, Block NVH, Better cooling jacket, controlled bore deformation and incorporation of various accessories viz. CRDI System, Fuel Filter, Oil Filters, Fuel Injection System, steering pump, Air Compressor etc.This paper portrays the complete perspective and design methodology used during design process. Integration of classical methods, and FE analysis is presented. FE analysis is mainly carried out for understanding bore deformation, stress flow path and cylinder head gasket pressure distribution. CFD analysis helped in optimizing the cooling jackets for a better thermal efficiency. Tools like DFMEA, DFMA etc are used along with value engineering concepts to make an efficient and cost effective product development process.Simulation results are elaborated to show the effectiveness of an integrated approach used in this development program. The simulation tools have helped us in selecting the right parameters for the design and ensure the rightness at the first development.