Homogeneous Charge Compression Ignition (HCCI) combustion has attracted considerable interest in recent years as a new combustion concept for internal combustion engines. The HCCI combustion process has four issues to be resolved: ignition timing control, slower combustion reaction rate, difficulty expanding stable operation to the high load region and avoidance of knocking. In this study, an attempt was made to overcome these issues by applying internal exhaust gas recirculation (EGR). Internal EGR rates were varied and examined their respective influence on HCCI combustion. The results indicated that the application of internal EGR retarded the ignition timing, with the result that the combustion reaction speed was moderated.