A study on the combustion characteristics by using Emulsion Fuel in Diesel Engine is performed experimentally. In this paper, the experiments are performed at engine speed 1800rpm, emulsion fuel ratio is 0%, 10%, 20%, and main measured items are specific fuel consumption, pressure, ratio of pressure rise, rate of heat release etc. The obtained conclusions are as follows. 1) Specific fuel consumption increase maximum 19.8% at low load, but is not effected at full load. 2) Ratio of pressure rise and rate of heat release are about the same in the case of 10% and 20% of emulsion fuel ratio. 3) Cylinder Pressure increase 11.7%, ratio of pressure rise increase 60.4% in case of emulsion fuel ratio 20% at full load. 4) Rate of heat release increase 76.9% in case of emulsion fuel ratio 20% at full load.