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In the present study, ethanol and EGDE were mixed in 1:1 proportion by volume to make a new oxygenate blend as a clean diesel fuel additive. Results showed that the oxygenate blend is miscible with diesel fuel within a wide proportion range above 0°C. With the increase in the content level of the oxygenate blend in diesel fuel, viscosity decreases near linearly, smoke point increases, closed flash point decreases rapidly below 5% of the oxygenate blend by volume in diesel fuel and then maintains unchanged with the oxygenate blend content increasing, and solidifying point of 0# diesel fuel decreases. When a engine was fueled with a diesel fuel added with 20% (v) of the oxygenate blend operating under partial load at 1800rpm and 2300rpm respectively, smoke emissions can be lessened by about 50% to 80%, and CO can be reduced by up to about 70%. NOx emissions generally increase slightly.