In this recent trend of increasing need for transportation and industrial growth, the use of diesel engine has increased exponentially in the last decade. Ever since its inception, the diesel engine has found its application in the heavy-duty field like industrial power plants, marine propulsion, rail locomotives, trucks, tractors, buses and farm equipments. Since the diesel engines are operated with high thermal efficiency and better fuel economy now-a-days diesel engines are gaining much importance. At the same time the diesel engines are emitted some of harmful emissions such as NOx, smoke and particulate matters. In the recent scenario of environmental protection worldwide environmental and health organizations are enforcing stringent regulations to reduce the harmful pollutant emissions. The chief pollutants from diesel engine are NOx, smoke and particulate matters. In this direction, this work is aimed to achieve further improvement the diesel engine combustion, performance and to reduce the emissions. To achieve the above objectives, it was decide that the oxygenated compounds along with to diesel fuel to use in the blended form and the necessary performance and emission tests were conducted. At the end it was observed that the results are highly satisfactory. Copyright © 2004 SAE International.