A single-cylinder, direct-injection diesel engine was modified to operate on compression ignition of homogenous mixtures of diesel fuel and air. Previous work has indicated that extremely low emissions and high efficiencies are possible if ignition of homogeneous fuel-air mixtures is accomplished. The limitations of this approach were reported to be misfire and knock. These same observations were verified in the current work. The variables examined in this study included air-fuel ratio, compression ratio, fresh intake air temperature, exhaust gas recirculation rate, and intake mixture temperatures. The results suggested that controlled homogeneous charge compression ignition (HCCI) is possible. Compression ratio, EGR rate, and air fuel ratio are the practical controlling factors in achieving satisfactory operation. It was found that satisfactory power settings are possible with high EGR rates and stoichiometric fuel-air mixtures. Successful HCCI operation results in near zero smoke emissions.