In order to improve the ITE and reduce NOx emissions in direct-injected hydrogen (HDI) engines under at medium and high loads, the effects of IT and hydrogen injection phase on the combustion and NOx emission characteristics of the HDI engine at high rpm and medium load were investigated numerically. The base engine is a four-cylinder turbocharged direct-injected gasoline (GDI) engine, which is modified into a HDI engine with direct-injected hydrogen fuel. The simulation is performed using GT-Power software. The operating condition of HDI engine is set to 5500 rpm and 50% load. Firstly, IT is optimized, and then based on the IT optimization results, the hydrogen injection phase is optimized. The results show that as the IT is advanced, the maximum pressure rise rate (MPRR) shows a gradual increasing trend, while the combustion intensity and the indicated thermal efficiency (ITE) increases firstly and then decreases, and the former reaches a maximum value at 25 degrees CA BTDC, while the latter reaches a maximum value of 40.5% at 18 degrees CA BTDC. In addition, the nitrogen oxide (NOx) emissions decrease as the IT is delayed. Based on 18 degrees CA BTDC of IT, the results indicated that the later the moment of hydrogen injection, the higher the MPRR, resulting in the greater the knock intensity. The ITE is less affected by the hydrogen injection phase. When the hydrogen injection phase is delayed, NOx emissions increase slightly.