Hydrogen as an alternative fuel for engines is gaining interest to decarbonize the heavy-duty sector. Hydrogen combustion in engines conventionally relies on the Otto cycle and either port fuel or direct injection. This combustion concept usually results in poor power density and non-ideal efficiencies due to the lean premixed operation and low compression ratio required to avoid preignition and knocking. In this study, hydrogen is directly injected at high pressures into the combustion chamber and spark-ignited with two different ignition systems (inductive and nanosecond repetitively pulsed discharge) at the periphery of the jet, with fuel conversion taking place predominantly in jet-guided (diffusion) mode while injection remains active.A rapid compression expansion machine (RCEM) is used to investigate the jet-guided hydrogen combustion thermodynamically and optically by combining high-speed Schlieren and OH* chemiluminescence imaging, and spark-induced breakdown spectroscopy (SIBS).SIBS reveals low air to fuel ratios at ignition time and location, ranging from 2.8 up to pure air depending on the condition and significant variation among repetitions. Both OH* chemiluminescence and Schlieren images illustrate how air entrainment pushes the flame-plasma kernel from the ignition location at the periphery of the jet towards the fuel-richer core, resulting in fast combustion of the already premixed fuel. Subsequently, the combustion process becomes dominated by the mixing dynamics. Under conditions of low in-cylinder pressures, the Heat Release Rate (HRR) closely follows the injected mass flow rate multiplied by the lower heating value of hydrogen, i.e., the combustion is mixing controlled. However, as the cylinder pressure increases, the mixing and combustion rates fall below the injected mass flow until lower densities are reached again.The delay between the start of injection and ignition primarily impacts the premixed peak, but the in-cylinder pressure and ignition source also play significant roles. This distinctive combustion process shows essential similarities to compression ignition Diesel combustion. The process holds the potential to achieve high efficiency, as hydrogen can be burned using process parameters typical of Diesel combustion without facing the constraints of knock or preignition and a complete absence of soot.