Abstract Results, obtained from many research papers it has been observed that in internal combustion engine about one third of total fuel energy is converted into useful work, about one third of the total fuel energy goes with exhaust gases and about one third of total fuel energy transfer to the coolant in form of heat through the cylinder wall, piston, valve etc. According to second law of thermodynamics, exhaust gas energy cannot be prevented. To fulfill the demand of higher specific output and efficiency of diesel fuel internal combustion engine heat transfer to coolant should be reduced. To reduce the heat transfer to the coolant ceramic coating is used inside the combustion chamber. In this paper, thermal analyses are investigated on a liner, which is coated with CaZrO3 material by means of using commercial code, namely ANSYS.