Abstract: Ethanol from renewable resources can be used as alternative fuel for Diesel Engines. The energy of biological materials (plant, agricultural residues) has the greatest potcntical in the agriculture, and enable the consumer to become a nonfossil fuel producer.In this paper, an investigation on Dieschol fueled Engine are introduced. The dynamic-economic properties, indicator diagram of combustion process, smoke emission, noise level and performance at lower engine speed are discussed when the Engine using different kind of fuels.A direction for the use of the Dieschol in unmodified Diesel Engine with excellent characteristics---especially in smoke emission and lower speed torque performance---when 17-83 (v)% Dieschol is fed. It is advantageous advancing the fuel injection time and raising the intake air temperture.