Numerical and experimental studies were made on some of the chemical and physical properties of water/oil emulsified fuel (W/OEF) combustion characteristics. Numerical investigations of W/OEF combustion's chemical kinetic aspects have been performed by simulation of water/n-heptane mixture combustion, assuming a model of a homogenous reactor's concentric shells. The injection and fuel spray characteristics are analyzed numerically also in order to study indirectly the physical effects of water present in diesel fuel during the combustion process. The experimental results of W/OEF combustion in the DI diesel engine are also presented and discussed. The results of engine testing in a broad field of engine loads and speeds have shown a significant pollutant emission reduction with no worsening of specific fuel consumption. (C) 2002 Elsevier Science Ltd. All rights reserved.