In this study, the potential use of oxygenated fuels such as ethylene glycol mono-normal butyl ether (EGBE) was investigated in an attempt to reduce the emission of exhaust smoke from diesel engines. Effects of the combustion method on exhaust emission of DI and IDI diesel engines were also examined. Since EGBE is composed of approximately 27.1% oxygen, this is one of several potential oxygenated fuels that could reduce the smoke content of exhaust gas. EGBE blended fuels have been proven to reduce smoke emission remarkably compared to the conventional commercial fuels. The test was conducted with single and four cylinder, four stroke, DI and IDI diesel engines. The study showed that a simultaneous reduction of smoke and NOx emission could be achieved by the combination of oxygenated blend fuels and the cooled EGR method in both DI and IDI diesel engines. It was also found that a reduction rate of exhaust emission in a DI engine was larger than an IDI diesel engine.