The main aim of this paper is the numerical investigation of air-fuel mixture formation and spray and combustion characteristics of EF7 engine equipped with spray-guided direct injection system. For this purpose, first, a six-hole injector is simulated in three different injection pressures and to validate the fuel injection characteristics, the results are validated against the Istituto Motori-CNR experimental data. Then, the injector position is selected near the spark plug and by changing of injector angle relative to the axis of combustion chamber, the appropriate angle for optimization mixture formation is obtained. Then, the effect of injection pressure, start of first and second injection as well as the effect of two-stage fuel injection with different proportions of fuel mass at primary and secondary injection are studied on the mixture formation, wall film and engine emissions. The results showed that the injector angle is extremely effective on the mixture formation, pressure and the amount of unburned hydrocarbons due to its direct impact on wall film mass. Also, in the two-stage injection, relatively homogeneous lean mixture compared to the stratified mixture results better combustion at part load condition.