The objective of this study is to investigate the effect of operating conditions on the performance of small HSDI compression ignition engine. Combustion and exhaust emission characteristics of engine were studied by using CFD simulation with ECFM-3Z combustion model. The conditions of simulation were varied with injection timing, injection pressure, and operating speed, and the results were compared in terms of combustion pressure, rate of heat release, NOx and soot. It was found that as injection timing was advanced and injection pressure is increased, combustion pressure and rate of heat release were increased. As a result, NOx generation is increased. Soot generation is also increased due to the wall film caused by the increase of the injection pressure and locally the rich mixture caused by the effect of the advancing of injection timing.