The application of adiabatic technology to engine can reduce heat transfer and heat loss and improve thermal efficiency and engine exhaust energy. A new thermal insulation coating was studied, which had low thermal conductivity and low thermal capacity. The proposed coating was sprayed on the piston wall surface, and the wall temperature changed with the in-cylinder gas temperature, which increased during the expansion stroke and decreased during the intake stroke. This property effectively reduced the heat transfer of wall and avoided the heating of intake air. Then the simulation test study were conducted on a heavy-duty engine by using the new coated piston, which indicated that the new thermal insulation coating with appropriate thickness could effectively reduce the heat transfer of piston and improve the thermal efficiency and exhaust energy of engine.