A comprehensive digital computer program is used to simulate the unsteady gas flow in the exhaust and inlet systems of a multi-cylinder, turbocharged, medium-high speed, four-stroke diesel engine installed at the authors＇ laboratory. The simulation assumes one-dimensional, time-varying gas flow in the engine pipes and incorporates numerous realistic fluid dynamic, thermodynamic and heat-transfer features. The characteristic mathematical transformation solution of the gas-flow dynamics partial differential equations is interfaced with First-Law analysis models of the cylinders main chambers and prechambers. The simulation results are compared most favourably against the engine＇s experimental performance results, which include mean air consumption rate, pressure histories at various locations on the exhaust system, and energy-mean temperature values at the exit of the exhaust system. The simulation results are also utilized for the determination of the various cylinders＇ exhaust waves intensity, as they are imposed by the design characteristics of the exhaust manifold. The plotting of relevant charts, showing the contour variation of gas pressure, temperature and Mach index against engine crank angle and pipe length, aids the correct interpretation of the observed behaviour. The detailed simulation of the fluid dynamic and heat-transfer fields in the engine exhaust system, permits an interesting parametric study of the influence of the degree of insulation of the exhaust system on the energy and exergy (availability) content of the exhaust gases before the turbocharger turbine, by coupling the above First-Law with Second-Law analysis concepts.