To meet stringent vehicular exhaust emission norms worldwide, several exhaust pre-treatment and post-treatment techniques have been employed in modern engines. Exhaust Gas Recirculation (EGR) is a pre-treatment technique, which is being used widely to reduce and control the oxides of nitrogen (NO(x)) emission from diesel engines. EGR controls the NO(x) because it lowers oxygen concentration and flame temperature of the working fluid in the combustion chamber. However, the use of EGR leads to a trade-off in terms of soot emissions. Higher soot generated by EGR leads to long-term usage problems inside the engines such as higher carbon deposits, lubricating oil degradation and enhanced engine wear. Present experimental study has been carried out to investigate the effect of EGR on soot deposits, and wear of vital engine parts, especially piston rings, apart from performance and emissions in a two cylinder, air cooled, constant speed direct injection diesel engine, which is typically used in agricultural farm machinery and decentralized captive power generation. Such engines are normally not operated with EGR. The experiments were carried out to experimentally evaluate the performance and emissions for different EGR rates of the engine. Emissions of hydrocarbons (HC), NO(x), carbon monoxide (CO), exhaust gas temperature, and smoke opacity of the exhaust gas etc. were measured. Performance parameters such as thermal efficiency, brake specific fuel consumption (BSFC) were calculated. Reduction in NO(x) and exhaust gas temperature were observed but emissions of particulate matter (PM), HC, and CO were found to have increased with usage of EGR. The engine was operated for 96 h in normal running conditions and the deposits on vital engine parts were assessed. The engine was again operated for 96 h with EGR and similar observations were recorded. Higher carbon deposits were observed on the engine parts operating with EGR. Higher wear of piston rings was also observed for engine operated with EGR. (C) 2011 Elsevier Ltd. All rights reserved.