In this study, the potential possibility of oxygenated fuel such as Methyl tertiary butyl ether (MTBE) was investigated for the sake of exhausted smoke reduction from diesel engine. MTBE has been used as a fuel additive blended into unleaded gasoline to improve octane number, but the study of application for diesel engine was incomplete. Because MTBE includes oxygen content approximately 18%, it is a kind of oxygenated fuel that the smoke emission of MTBE is reduced remarkably compared with commercial diesel fuel. But, the NOx emission of MTBE blended fuel is increased compared with commercial diesel fuel. And, it was tried to analyze not only total hydrocarbon but individual hydrocarbon components from $C_1$ to $C_6$ in exhaust gas using gas chromatography to seek the reason for remarkable reduction of smoke emission. Individual hydrocarbons($C_1$~$C_6$) as well as total hydrocarbon of oxygenated fuel are reduced remarkably compared with diesel fuel. And, the effects of exhaust gas recirculation(EGR) on the characteristics of NOx emission has been investigated, too. It was found that simultaneous reduction of smoke and NOx was achieved with oxygenated fuel and cooled EGR method.