In view of increasing pressure on crude oil reserves and environmental degradation as an outcome, blending of diesel fuel has provided a better solution. The objectives of this report is to analyse the performance and the emission characteristic of a Single Cylinder Diesel engine that are using blended fuel & compared to usage of ordinary diesel that are available in the market. This paper describes the setups and the procedures for the experiment which is to analyse the emission characteristics of diesel engine. Data that are required for the analysis will be observed from the experiments. Calculations and analysis will be done after all the required data needed for the experiment is obtained. A four stroke Single cylinder CI engine will be adopted to study the emissions at zero load, partial load & full load with using 5, 10, 15 & 20% ethanol-diesel blends.