An experiment on the application of diesel and ethanol blends as fuel in diesel engine was carried out at various engine loads and ethanol percentages. The experiments were performed using solar, E2.5%, E5%, E7.5%, and E10% ethanol-diesel blends and 0, 10, 20, 30, 40, 50 and 60 Nm engine loads. Several engine parameters i.e. power, brake specific fuel consumption, brake thermal efficiency, the exhaust gas temperature, and lubricating oil temperature were investigated. As a complement of the experiment, the exhaust emission characteristic of CO, HC and smoke were also investigated. The results indicate that the engine power and the indicated mean effective pressure increase with increasing of ethanol percentage. The brake specific fuel consumption and exhaust gas temperature decrease, meanwhile the lubricating oil temperature increase with increasing the ethanol content. From the experiments, as the increase of ethanol percentage content, the emission of CO, HC and smoke decrease.