In this research work, an experimental investigation was carried out to study the combustion, performance and emission characteristics of a single cylinder water cooled diesel engine, when fueled with blends of diethyl ether and diesel. Three different blends with 5{\%}, 10{\%} and 15{\%} of diethyl ether were tested and compared with neat diesel fuel at different load conditions. Fuel consumption, in-cylinder pressure and exhaust emissions were measured at all load conditions. When compared to neat diesel fuel, the blends of diethyl ether exhibited reduced carbon monoxide, nitrogen oxide and smoke emissions with increased hydrocarbon emissions. Lower brake specific energy consumption and increased brake thermal efficiency were observed for the blended fuels. The in-cylinder peak pressure and the heat release rate for blended fuels were lower compared to the diesel fuel. It was evident from the experimental results that 15{\%} of diethyl ether blend has the potential of overcoming the existing NOx-smoke trade-off in diesel engines.