Ammonia blending in diesel is an efficient combustion strategy that overcomes the combustion resistance of ammonia while maintaining high engine adaptability. A smaller and accurate chemical kinetic mechanism is crucial for exploring the application of ammonia/diesel in engine. This study, based on the stepwise validation and optimization mechanisms, developed a novel ammonia/diesel mechanism comprising 130 species and 772 reactions. The mechanism was validated through kinetic verification for ammonia, n-dodecane, diesel and ammonia/diesel fuel. For profound understanding of the low-temperature autoignition chemistry of ammonia/diesel, applying this mechanism construct precise CFD models in RCCI optical engine. The results indicate that this mechanism can accurately capture ignition under high AER, wide working conditions, and low-temperature conditions. In the kinetic analysis, the C–N interaction reaction, particularly C2H4+NH2=C2H3+NH3, plays a crucial role in predicting the IDT of ammonia/diesel. In addition, NH2 undergoes deoxygenation reaction with HO2, converting inactive radicals HO2 into OH active radicals, enhances the reactivity of ammonia/diesel under low-temperature conditions. Applying the mechanism to CFD models, the model accurately predicts the pressure and heat release rate in RCCI optical engine, capturing the phenomenon of the high-temperature flame rapidly spreading towards the low-temperature regions in the cylinder. The research on this mechanism can construct accurate CFD model for optimizing efficient and clean combustion simulations of ammonia/diesel.