In order to meet the enhancing exhaust gas regulations, we need to solve the industrial CRDI diesel engine's knocking problem which causes environmental pollutions. Knocking is one of the causes that produce exhaust gas as well as serious damage to engines. In case of an industrial vehicle, the existing knocking sensor cannot guarantee the accuracy due to the problem in the working environment. Therefore, this study aims to develop a knocking discrimination emulator for the industrial CRDI engine in order to discriminate knocking and defective cylinder by using crankshaft's angular speed. We have implemented the knocking diagnostic algorithm that enables knocking discrimination and engine balance correction applicable to the ECU exclusively to the common rail engine on the emulator. The development of the emulator has enabled to adjust fuel injection timing and amount of fuel. Thus, this study aims to improve engine efficiency and to reduce emissions.