摘要:Diesel engine is known as the most efficient engine with high efficiency and power but always reported as high fuel emission. Malaysia National Automotive Policy (NAP) was targeting to improve competitive regional focusing on green technology development in reducing the emission of the engine. Therefore, ethanol was introduced to reduce the emission of the engine and while increasing its performance, Palm methyl ester was introduced as blend enhancer to improve engine performance and improve diesel-ethanol blends stability. This paper aimed to study the characteristics of the blends and to prove the ability of palm-methyl-ester as co-solvent in ethanol-diesel blends. Stability and thermophysical test were carried out for different fuel compositions. The stability of diesel-ethanol blended was proved to be improved with the addition of PME at the longer period and the stability of the blends changed depending on temperature and ethanol content. Density and viscosity of diesel-ethanol-PME blends also give higher result than diesel-ethanol blends and it's proved that PME is able to increase density and viscosity of blends. Besides, heating value of the blends also increases with the increasing PME in diesel-ethanol blends.