Diesterol is a new specific term which denotes a mixture of fossil diesel fuel (1)), vegetable oil methyl ester called biodiesel (B) and plant derived ethanol (E). In the context of the present paper, this term refers specifically to the combination of diesel fuel, bioethanol produced from potato waste, dehydrated in a vapor phase using 3A Zeolite, and sunflower methyl ester produced through transesterification. The mixture of DBE, i.e. diesterol, was patented under the Iranian patent No. 39407, dated 12-3-2007. The main purpose of this research work was to reduce engine exhaust NO(x), CO, HC and smoke emissions due to application of biofuel and the increase of fuel oxygen content. It was needed to prepare suitable low cost and renewable additives. The diesterol properties such as pour point, viscosity, flash point, copper strip corrosion, ash content, sulfur content and cetane number were determined experimentally. The optimum ratio of bioethanol and biodiesel was found to be 40/60 considering fuel oxygen content, fuel price and mixture properties. Bioethanol was added to enhance the oxygenated component in the fuel, while the sunflower methyl ester was added to maintain the fuel stability at low temperatures. The parameters considered for investigation are the engine power, torque, specific fuel consumption and exhaust emissions for various mixture proportions. The experimental results showed that bioethanol plays an important role in determining the flash point of the blends. By adding 3% bioethanol to diesel and sunflower methyl ester, the flash point was reduced by 16 degrees C. The viscosity of the blend was also reduced by increasing the amount of bioethanol. The sulfur content of bioethanol and sunflower methyl ester is very low compared to diesel fuel. The sulfur content of diesel is 500 ppm whereas that of bioethanol and sunflower methyl ester is 0 and 15 ppm, respectively. This lower sulfur content is another factor enhancing the use of fuel blends in diesel engines. The bioethanol and sunflower methyl ester combination has sulfur content less than 20 ppm. The maximum power and torque using diesel fuel were 17.75 kW and 64.2 Nm at 3600 and 2400 rpm, respectively. Adding oxygenated compounds to the new blend seems to slightly reduce the engine power and torque and increased the average sfc for various speeds. The experimental measurement and observation of smoke concentration, NO(x), CO and HC concentration indicated that both of these pollutants reduced by increasing the biofuel composition of diesterol throughout the engine operating range. (C) 2008 Elsevier Ltd. All rights reserved.