The hydraulic excavator energy-saving research mainly embodies the following three measures: to improve the performance of diesel engine and hydraulic component, to improve the hydraulic system, and to improve the power matching of diesel-hydraulic system-actuator. Although the above measures have certain energy-saving effect, but because the hydraulic excavator load changes frequently and fluctuates dramatically, so the diesel engine often works in high-speed and light load condition, and the fuel consumption is higher. Therefore, in order to improve the economy of diesel engine in light load, and reduce the fuel consumption of hydraulic excavator, energy management concept is proposed based on diesel engine cylinder deactivation technology. By comparing the universal characteristic under diesel normal and deactivated cylinder condition, the mechanism that fuel consumption can be reduced significantly by adopting cylinder deactivation technology under part of loads condition can be clarified. The simulation models for hydraulic system and diesel engine are established by using AMESim software, and fuel combustion consumption by using cylinder-deactivation-technology is studied through digital simulation approach. In this way, the zone of cylinder deactivation is specified. The testing system for the excavator with this technology is set up based on simulated results, and the results show that the diesel engine can still work at high efficiency with part of loads after adopting this technology; fuel consumption is dropped down to 11% and 13% under economic and heavy-load mode respectively under the condition of driving requirements. The research provides references to the energy-saving study of the hydraulic excavators.