A High percentage of fuel consumption worldwide is in internal combustion engines which has led environmental organizations and authorities to put further pressure on the engine industries to reduce CO2 emissions and enhance engine efficiency. However, historically, the effect of the compression ratio on increasing thermal efficiency of the engine is well known, hence; numerous technical solutions have been proposed to implement a variable compression ratio concept. A new first-class engineering solution to use a hydraulic piston was initially patented by BICERA (British Internal Combustion Engine Research Association) , then improved by Continental and Daimler Benz. A Hydraulic variable compression ratio piston is a hydraulically actuated piston that provides a practical method of obtaining a variable compression ratio piston. In this literature, a hydraulic variable compression ratio piston for a Volvo D13 diesel engine was designed, analyzed, modeled and discussed. This analysis was accomplished by first performing kinematic and dynamic analyses for the piston motion and acceleration based on the crank-slider mechanism. Following this the oil flow characteristics were defined in every mechanical element transferring the oil in its journey from the engine pump to the piston. Moreover, two different designs were proposed in an attempt to predict the compression ratio by modeling the hydraulic, dynamic and engine execution simultaneously. Additionally, stress on the piston was analyzed using Finite Element Analysis (FEA) to assure piston sustainment and rigidity against the harsh combustion chamber environment. In conclusion, the best design was successfully selected and finalized to reach a wide compression ratio range under a boosted inlet pressure based on the selected design, dimensions, check valves and relief valves.