A newly designed combustion chamber of diesel engine with a modified piston crown was prepared for the purpose of investigation for reduction of NO emission. It was intended to realize 2-stage combustion that is to keep fuel rich condition during early stage of combustion and fuel lean condition during next stage. The engine was tested on various conditions concerning exhaust gas emissions especially about NO emission and simultaneously fuel consumption rate. It was found that the engine with 2-stage combustion type piston emits significantly low NO at various speed and torque compared with conventional engines, but it raised points at issue in CO and smoke emissions with fuel consumption rate. The increasing of injection pressure on 2 stage combustion type diesel engine affects on CO and smoke emission considerably to reduce but slightly on NO to increase. The effect of 2-stage combustion was better at low speed than at high speed.