A cycle simulation of 4 cycle spark ignition engine using methanol-water blend as a fuel has been developed for study of prediction of power, specific fuel consumption, mean effective pressure and thermal efficiency. One-dimensional flow model for intake process and thermodynamic model for combustion process were selected. After, performance test was made with conventional engine which was modified in consideration of fuel properties. And computational results by simulation have been compared with experimental results. As the agreement between computational and experimental results was good, prediction of engine performance by was possible.