In order to find out the potential of LP gas as a substitute fuel for small fm engine, experiments were carried out with a four-stroke spark-ignition engine which was modified from a kerosene engine mounted on the power tiller. Performance characteristics of kerosene and LP gas engine such as torque, volumetric efficiency fuel consumption rate, brake thermal efficiency, exhaust temperature, and carbon monoxide and hydrocarbon emissions were measured and analyzed under various levels of engine speed and compression ratio. The results were summarized as follows. 1. It showed that forque of LPG engine was 41% lower than that of kerosene engine with the same compression ratio, but LPG engine with compression ratio of 8.5 it was showed similar torque level to kerosene engine with compression ratio of 4.5. 2. Fuel consumption of LPG engine was reduced by about 5.1% and thermal efficiency was improved by about 2% compared with kerosene engine with the same compression ratio. With the incrasing of compression ratio in LPG engine fuel consumption rate decreased and thermal efficiency increased. 3. Exhaust temperature of LPG engine was about 15% lower than that of kerosene engine. Concenrations of emissions from LPG engine was affected insignificantly by compression ratios, and carbon monoxide emissions from the LPG engine was not affected by engine speed so much. The carbon monoxide and hydrocarbon emissions from LPG engine were about 94% and 66% lower than those of kerosene engine, respectively.