Nowadays, researchers are very interested in improving the stability and solubility of blending diesel fuel with a high percentage of ethanol. As a result, the goal of this paper was to find a way to use the surfactant of Tri-n-butyl phosphate (TBP) substance to blend ethanol with diesel fuel to a level of 40%. Diesel fuel is mixed with ethanol in volumetric proportions of 10%, 20%, 30%, and 40%, as well as a tiny amount of TBP from 1 to 4%. The prepared blends were the subject of an experiment evaluation by fueling a direct injection diesel engine. This engine is a water-cooled, commercial diesel engine, single cylinder, and four-stroke with 12 kW maximum power. The four blends were evaluated as clean fuel mixtures of 10% ethanol/90% diesel/1% TBP, 20% ethanol/80% diesel/2% TBP, 30% ethanol/70% diesel/3% TBP, and 40% ethanol/60% diesel/4% TBP. As the starting fuel, we used 100% diesel to compare the results. The engine’s output and emissions have been measured at various engine loads and constant speeds of 1500 rpm. According to the data gathered, even when the percentage of ethanol was increased to 40%, neither the base fuel nor the engine BTE changed significantly. The engine exhaust gas temperature was found to decrease slightly when the proportion of ethanol was increased. When bioethanol is increased to 40% of the base volume, it causes an increase in the combustion of unburned hydrocarbons and CO emissions. However, when the percentage of ethanol was increased from 100% diesel to the base fuel to 40%, CO2 emissions decreased, and O2 emissions slightly increased.