This article presents a comprehensive overview of methanol as a potential oxygenated fuel for internal combustion engines. Here two approaches have been examined to evaluate the utilization of methanol, namely blending with diesel/biodiesel/methanol and premixing with intake air or fumigation. In conventional compression ignition engines, up to 95% and 25% diesel can be replaced by methanol through fumigation and blending, respectively. Higher latent heat of vaporization of alcohol led to lower peak in‐cylinder pressure and NOx; however, it negatively affects thermal efficiency and hydrocarbon and carbon monoxide emissions. Fumigation of alcohol requires modifications in the existing engine, whereas blending needed surfactants or additives to produce stable alcohol–diesel blends. High injection pressure and late direct injection, methanol–diesel blends have shown lower emissions and proved their potential as a suitable replacement for ethanol–diesel blends from the components durability perspective.