AbstractDwell duration of multiple‐injection scheme is an important parameter, which makes it possible to shift the tradeoff curve between soot and NOx closer to the origin. In this investigation, therefore, energy and exergy analyses are carried out for various two‐step injection schemes in which 25% of the total fuel is injected during the second pulse and the dwell time is increased from 5°CA (crank angle) to 30°CA by 5°CA increments. The calculations are performed for a Lister 8.1 indirect injection (IDI) diesel engine at full load operation. The energy analysis for these schemes is performed during a closed cycle by using a three‐dimensional CFD code. The cylinder pressure results for the baseline engine are compared with the corresponding experimental data and they show good agreement. For the exergy analysis, an in‐house computational code has been developed, which uses the results of energy analysis in various cases. With crank angle positions and dwell durations set for different injection schemes, various rates of exergy are calculated and the cumulative exergy components are identified separately. The results show that the values of work exergy and exergy efficiency decrease when the dwell duration is changed from 5°CA to 30°CA. Also, there is a sharp change in the exergy parameters when the dwell time reaches 25°CA.