The desire for higher fuel economy, improved performance and drivability expectations of customers from engines are gradually increasing along with stringent emission regulations set by the government. There is customer demand for 4-wheeler vehicle having good power, torque and better fuel economy throughout the speed range of vehicle and an implied environmental need of improved emission characteristics. Variable Valve Actuation (VVA) has been applied to many engines in order to enhance the engine performance. Many engine manufacturing companies have started the application of variable valve actuation mechanism in their next generation vehicles. The VVA is a generalized term used to describe any mechanism or method that can alter the shape or timing of a valve lift event within an internal combustion engine.There are various ways to improve to the performance of engine some of which are; supercharging, turbocharging, variable compression ratio, variable intake system geometry, variable valve timing and lift etc.In this work we have concentrated on variable valve timing and lift for diesel engines. This work presents a novel two-step VVA mechanism to facilitate variation in valve timing and lift of base engine. Thus this mechanism helps to divide the operating speed range of engine into two zones i.e. low speed and high speed zone and setting a switch over point, thus helping the engine breath effectively.