An experimental investigation on the application of the blends of ethanol with diesel to a diesel engine was carried out. First, the solubility of ethanol and diesel was conducted with and without the additive of normal butanol (n-butanol). Furthermore, experimental tests were carried out to study the performance and emissions of the engine fuelled with the blends compared with those fuelled by diesel. The test results show that it is feasible and applicable for the blends with n-butanol to replace pure diesel as the fuel for diesel engine; the thermal efficiencies of the engine fuelled by the blends were comparable with that fuelled by diesel, with some increase of fuel consumptions, which is due to the lower heating value of ethanol. The characteristics of the emissions were also studied. Fuelled by the blends, it is found that the smoke emissions from the engine fuelled by the blends were all lower than that fuelled by diesel; the carbon monoxide (CO) were reduced when the engine ran at and above its half loads, but were increased at low loads and low speed; the hydrocarbon (HC) emissions were all higher except for the top loads at high speed; the nitrogen oxides (NOx) emissions were different for different speeds, loads and blends.