This experimental study was carried out to determine the feasibility of utilization of alcohol-diesel microemulsions as diesel fuel in compression ignition (CI) engines. The fuel properties of 12 ethanol-ethyl acetate-diesel microemulsions designated as 200 degrees-10/9/81, 200 degrees-15/9.5/75.5, 200 degrees-20/10/70, 190 degrees-10/22/68, 190 degrees-15/25/60, 190 degrees-20/29/51, 180 degrees-10/35/55,180 degrees-15/39/46, 180 degrees-20/40/40, 170 degrees-10/43/47, 170 degrees-15/45/40, and 170 degrees-20/50/30 have been determined in accordance with the Bureau of Indian Standards (BIS) and Institute of Petroleum (IP). When compared to diesel, the microemulsion prepared from 200 degrees and 190 degrees proof ethanol were found to have relative density variations from -0.78% to 0.87% and kinematic viscosity and gross heat of combustion variations from 9.8% to 17.7% lower and 2.5% to 21.5% lower than that of the diesel. The flash points, fire points, and pour points of the microemulsions were found in the range of 8.3 to 16.7 degrees C, 11.5 to 20.5 degrees C, and 6.7 to -2.3 degrees C, respectively. The performance of a 3.73 kW diesel engine on microemulsion fuels of 200 degrees and 190 degrees proof ethanol with respect to brake power, brake specific fuel consumption, brake thermal efficiency, and emission of CO, UBHC, and NO, revealed that these fuels have almost similar powerproducing capability with reduced exhaust emission. Thus, the stable microemulsions of 200 degrees and 190 degrees proof ethanol were found to be compatible with the diesel and can be used as an alternative to diesel in CI engines. The use of the above microemulsions replaced 19-49% of the diesel in low brake horse power (bhp) constant speed CI engines.