The simulation of power cycle and unsteady gas exchange processes in the inlet and exhaust systems of the single-cylinder 2-stroke cycle compression ignition engine was studied in this paper. In power cycle process, the single-zone model proposed by Whitehouse and Way was used, and the convective and radiative heat transfer from cylinder contents to surroundings was considered. To solve the equations for gas exchange process, the generalized method of characteristics including area change, friction, heat transfer and entropy gradients was used. Also with the path line calculation, the entropy change along the path line and the variation of specific heat due to the change of temperature and the composition of cylinder gas were considered. As a result of the simulation, the change of pressure and temperature in the cylinder against the crank angle, the rate of net heat release, and the change of properties at each point in the inlet and exhaust pipe against the crank angle were obtained. The engine performances under various operating conditions were also calculated.