The addition of ethanol to diesel fuel simultaneously decreases cetane number, high heating value, aromatics fractions and kinematic viscosity of ethanol blended diesel fuels and changes distillation temperatures. An additive used to keep the blends homogenous and stable, and an ignition improver, which can enhance cetane number of the blends, have favorable effects on the physicochemical properties related to ignition and combustion of the blends with 10% and 30% ethanol by volume.The emission characteristics of five fuels were conducted on a diesel engine. At high loads, the blends reduce smoke significantly with a small penalty on CO, acetaldehyde and unburned ethanol emissions compared to diesel fuel. NO x and CO 2 emissions of the blends are decreased somewhat. At low loads, the blends have slight effects on smoke reduction due to overall leaner mixture. With the aid of additive and ignition improver, CO, unburned ethanol and acetaldehyde emissions of the blends can be decreased moderately, even total hydrocarbon emissions are less than those of diesel fuel. The results indicate the potential of diesel reformation for clean combustion in diesel engines. r