Oxidation characteristics of ethanol in the temperature range 200 to 1000 degreesC suitable to its use in automobiles are studied to highlight the role and optimum values of different combustion controlling parameters for its clean combustion. Sensitivity evaluation of different reaction paths has concluded some important reactions responsible for the ethanol oxidation. It is observed that clean combustion of ethanol can be obtained with a proper combination of combustion parameters viz., temperature, C2H5OH/O-2 mole ratio and residence time.