A model combustion chamber of Wankel type rotary engine was employed to study the DISC RE system. A two-stroke Diesel engine's cylinder head was replaced with this combustion chamber to simulate temporal change of air flow and pressure fields inside the chamber as an actual engine. The base engine was motorized to operate as a continuous rapid compression and expansion machine. Pilot fuel spray was injected onto a glow plug to form a pilot flame and it ignites the main fuel spray. The ignitability of pilot fuel, mixture formation process, ignition process of main fuel by pilot flame and the effect of pilot and main injection timings on combustion characteristics were examined.