CI engine is an important and widely used engine in the power generation industries generally fuelled by diesel. The use of CI engine vehicles is increasing continuously day by day which in turns diesel fuel consumption and engine emissions increases. Limitation of these conventional fuel as well as continuously increasing global warming by engine emissions has motivated to researchers in the field of alternative renewable fuel source like biofuel such as biodiesel, methanol, ethanol etc. Ethanol is the most commonly researched alcoholic fuel as alternative fuel. The objective of this study is to investigate the effect of ethanol-diesel fuel blend on engine performance such as BSFC, BTE, brake power, brake torque as well as engine emission parameters such as NOx, CO, HC, exhaust gas temperature etc. of a CI engine. Through this study it was found that ethanol significantly reduces HC, PM, NOx and exhaust gas temperature but slightly increases fuel consumption. Also, ethanol additive enhanced engine performance like BTE, brake power and brake torque. The outcomes of this study may help for researchers to understand the effect of ethanol addition on engine performances and emissions at different ethanol-diesel fuel blend concentration for CI engine.