Diesel engines have been widely used for better efficiency and low emissions, but diesel engine produces more smoke, particulate matter and oxides of nitrogen and reducing all these emissions simultaneously is not possible as on today due to trade of between oxides of nitrogen and smoke. Engines emission can be decreased by employing fumigation. Using fumigation process emission composition can be reduced when compared to normal operation. In this work an attempt has been made to reduce oxides of nitrogen, hydrocarbon and carbon monoxide using methanol fuel in the combustion chamber. The chemical behaviors and reactions of methanol over hydrocarbons also analyzed. A single cylinder four stroke, 5hp, direct injection, engine test rig was used for experiment purpose. From the experimental analysis, it was found that alcoholic fuels can effectively be used in diesel engines with methanol fumigation using EFI kit that normally operates at high power outputs. The result shows that brake thermal efficiency is slightly decreased when compared without modification at all flow rates.