In order to obtain underwater or underground power sources, the closed cycle diesel engine is operated in the non air-breathing circuit system where the major species of the working fluid include oxygen, argon, and recycled exhaust gas. In the present study, the closed cycle diesel engine is designed to operate at the intake pressure between 2 and 3 bar. For operating in the open-cycle and closed-cycle situations, experimental apparatus using this diesel engine is made with ACAP as data acquisition system. In open, semi-open, and closed cycle modes, the predicted p-$ heta$ and P-V are compared with load bank power. Computation have been performed for wide range of major experimental parameters such as the specific fuel and oxygen concentrations, fuel conversion efficiency and polytropic exponent, IMEP and maximum cylinder pressure.