The paper describes the development of zero dimensional single zone thermodynamic model for compression ignition engine cycle simulation. Rate of heat release due to combustion is modeled with double wiebe function, takes care of premixed as well as diffusive phase of combustion. Adjustable parameters of wiebe function are obtained by fitting it to experimental mass fraction burned profile by least square method. Empirical correlations are established between adjustable parameters of wiebe function, relative air-fuel ratio and engine operating conditions. The simulation is used to analyze the engine performance fuelled with diesel, Palm Oil Methyl Ester (POME) and its blends. Effect of change in compression ratio on peak pressure, net heat release rate and brake thermal efficiency is analyzed and discussed. The model is validated by comparing predicted peak pressure and brake thermal efficiency with diesel and POME –diesel blends at 17.5:1 compression ratio with that of experimental results.