Combustion characteristics of diesel engine depends on mixture formation process during Ignition delay and premixed flame region. Fuel and air mixture formation has a great influence on the exhaust emission. Therefore, the present study focused on the combustion mechanism of Homogeneous Charge Compression Ignition (HCCI) engine. This study was carried out to investigate the combustion characteristics of direct injection type HCCI engine using a visualization engine. To investigate the combustion characteristics, we measured cylinder pressure and calculated heat release rate. In addition, we investigated the flame development process by using visualization engine system. From the experimental result of HCCI engine, we observed that cool flame was always appeared in HCCI combustion and magnitude of cool flame was proportional to magnitude of hot flame. And we also found that fuel injection timing is more effective to increase lean homogeneous combustion performance than intake air temperature. Since increasing the intake air temperature improved fuel vaporization before the fuel atomizes, we concluded that increasing the temperature has disadvantage fur homogeneous premixed combustion.