The influence of the mass composition of a water–fuel emulsion on the ecological characteristics of a diesel engine was evaluated. Research was performed on the diesel engine MMZ D-245.10 (4-cylinder, D = 110 mm, S = 125 mm) fueled with an emulsion having a water content of 10, 20, and 30% by weight. A noticeable drop of nitrogen oxide emissions with a growth of the mass fraction of water in the emulsion was revealed, which is a consequence of a decrease in the cycle’s average temperature. During research into engine operation using emulsions, its structure-borne noise was evaluated. For all engine operation modes investigated, the lowest noise level was achieved when the engine was running on diesel fuel (DF), and the highest when an emulsion consisting of 70% DF and 30% water was used.