An older generation 2V 6 cylinder diesel engine operating with max specific power of 20kW/l and 11.0MPa peak firing pressure was upgraded for higher peak firing pressure capability, higher specific power output and adaptation of a common rail fuel injection system. Key basic dimensions of the major components were retained to enable continued usage of existing fixed transfer line machining facility. The 2V /cyl configuration was retained.Thermodynamic simulations, Finite Element analysis of head, block gasket structure, connecting rod and main bearing walls were carried out. Analysis of the crankshaft torsional vibration system and bearings were performed. The bolting system and tightening methods were reviewed and modified. Theoretical calculations on coolant flow and lub oil flow requirements were done. Physical experiments were done to study the gasket sealing behavior, bore distortion.A common rail system from Bosch was adapted and a Selective Catalytic Reduction method was adopted for reduction of NOx emissions. Performance and emission development was done with a 2V inclined injector with various TC, nozzle combination using a 1600bar common rail system.The engine was upgraded to 29kW/lt specific power operating at 14.0MPa. The result of the development proved it is feasible to meet Euro 5 emission norms with a 2V configuration and with incremental changes the life of an older platform Euro 2 engine was extended upto Euro 5.