The present work is based on the need for understanding the in-cylinder flow and its subsequent effects on combustion in a valved-two-stroke spark ignition engine with fuel injection using Computational Fluid Dynamics (CFD) and experimental techniques. In this context, the CFD code KIVA-II has been modified to model the two-stroke engine gas exchange and combustion processes. A 3-D Cartesian grid generation program for complex engine geometry has been added to the KIVA code which has been modified to include intake and exhaust flow processes with valves. New and improved sub models for wall jet interaction, mixing controlled combustion and one dimensional wave action have also been incorporated. The modified version of the program has been used to simulate a fuel injected two-stroke spark ignition engine and parametric studies have been undertaken. The simulated flow, combustion and exhaust emission characteristics over a wide range of operating conditions show the expected trends in behaviour observed in actual engines. In the second phase of this study, the air-assisted-fuel-injection (AAFI) process into a cylinder has been simulated with a high resolution computational grid. The simulation results are presented and compared with experimental data obtained using the Schlieren optical technique. An approximate method based on the conservation of mass, momentum and energy of the spray jet and using a comparatively coarse grid has been suggested for simulating the AAFI process. The simulation study predicts a high degree of atomisation of fuel spray with Sauter mean diameter around 10 μm even with moderate air and fuel pressures. The penetration and width of spray are simulated within 15% of the experimental values. In the last phase of this study, the flow and combustion processes have been studied for a four-stroke spark ignition engine with the AAFI process. The simulation results obtained using this approximate method have been validated with experimental data generated for the same engine configuration.