This document summarizes an experiment that used Taguchi methods to optimize diesel engine parameters to reduce NOx emissions and improve fuel economy. A single cylinder diesel engine was tested across four levels of five parameters: clearance volume, valve opening pressure, injection timing, nozzle hole area, and load torque. Testing was conducted according to an orthogonal array experimental design. Results showed that valve opening pressure, clearance volume, and injection timing had the greatest impact on NOx emissions and fuel consumption. Optimal parameter settings were identified that minimized both NOx emissions and fuel consumption. A confirmation test found good agreement between predicted and actual results.