The performance of a constant speed, stationary diesel engine using ethanol-diesel blends as fuel has been evaluated experimentally. The experiments were performed using 5, 10, 15 and 20% ethanol-diesel blends. Diesel fuel was used as a basis for comparison. The effect of using different blends of ethanol-diesel on engine horsepower, brake specific fuel consumption, brake thermal efficiency, the exhaust gas temperature and lubricating oil temperature were studied. The results indicate no significant power reduction in the engine operation on ethanol-diesel blends (up to 20%) at a 5% level of significance. Brake specific fuel consumption increased by up to 9% with an increase of ethanol up to 20% in the blends as compared to diesel alone. The exhaust gas temperature, lubricating oil temperatures and exhaust emissions (CO and No-x) were lower with operations on ethanol-diesel blends as compared to operation on diesel.