Nowadays, to mitigate the global warming problem, the requirement of carbon neutrality has become more urgent. Oxy-fuel combustion (OFC) has been proposed as a promising way of carbon capture and storage (CCS) to eliminate carbon dioxide (CO 2 ) emissions. This article explores the implementation of OFC technology in a practical gasoline direct injection (GDI) engine fueled with gasoline−ethanol blends, including E0 (gasoline), E25 (25% ethanol, 75% is gasoline in mass fraction), and E50 (50% ethanol, 50% is gasoline in mass fraction). The results show that with a fixed spark timing, φ CA50 (where 50% fuel is burned), of E50 and E25 is about 4.5 and 1.9°later than that of E0, respectively. Ignition delay (θ F ) and combustion duration (θ C ) can be extended with the increase of the ethanol fraction in the blended fuel. With the increase of the oxygen mass fraction (OMF) from 23.3 to 29%, equivalent brake-specific fuel consumption (BSFC E ) has a benefit of 2.12, 1.65, and 1.51% for E0, E25, and E50, respectively. The corresponding increase in brake-specific oxygen consumption (BSOC) is 21.83, 22.42, and 22.58%, respectively. Meanwhile, θ F , θ C , and the heat release rate (HRR) are not strongly affected by the OMF. With the increase of the OMF, the increment of θ F is 0.7, 1.8, and 2.2°for E0, E25, and E50, respectively. θ C is only extended by 1, 1.1, and 1.4°, respectively. Besides, by increasing the intake temperature (T I ) from 298 to 358 K under all of the fuel conditions, BSFC E and BSOC present slight growth trends; θ F and θ C are slightly reduced; in the meantime, φ CA50 , φ Pmax (crank angle of peak cylinder pressure), and the position of the HRR peak are advanced by nearly 1°.