In this study, the combustion characteristics and durability of a diesel engine using emulsified fuel was investigated. Water was used in oil type emulsified fuel. In order to understand the effect of emulsified fuel in a wide range of engine running conditions, D-13 mode was selected as a test condition, and a durability test was included to understand the long-term effect of water. Combustion pressure in a cylinder, exhaust emissions, specific fuel consumption, sound level and maximum torque were measured. NOx and PM were simultaneously reduced and the specific fuel consumption was increased and decreased at low and high loads, respectively. There was no trouble and any damage on the parts of the cylinder during a 500 hour durability test.