Utilization of renewable alcohols as fuel grabbed the attention of the researchers as they can be extracted from lignocellulosic bio-mass. In the present work the influence of EGR rate and injection timing on the performance and emission characteristics of a single cylinder, four stroke, direct injection diesel engine has been experimentally investigated using D70B30 (70% diesel and 30% butanol) blend as fuel. To conduct this study, we recorded the combustion and emission characteristics under nine operating conditions at three EGR rates (i.e. 10%, 20% and 30%) and three injection timings (i.e. 21°CA bTDC, 23°CA bTDC and 25°CA bTDC) under peak load at 5.3 bmep. Results indicate that at same EGR rate and injection timing D70B30 blend show 15% and 20% reduction in NO x and smoke density respectively. When the EGR rate is increased there is a significant reduction in NOx emission with heavy penalty in smoke emission. Advancing the injection timing reduced the smoke emission by 60% and 22% increase in NOx concentration also gave better combustion behavior due to prolonged ignition delay. The statistical analysis is significant and engine running with n-butanol/diesel blend under 21°bTDC and 30% EGR had shown positive emission reduction. At 21°bTDC and 30% engine undergoes Low Temperature Combustion (LTC). It may be concluded that n-butanol can be an excellent substitute for fossil diesel and long term durability tests have to be carried out for its commercial usage in the conventional diesel engines.