This paper described the effects of DME blended fuel on the engine combustion and emission characteristics of four cylinder CRDI diesel engine. Biodiesel was added into the DME fuel in order to improve the low kinematic viscosity of DME fuel. In this work, the experiment was performed under th various injection timings and injection strategy at constant engine speed and engine load. To maintain the fuel pressure and temperature, pressure and temperature controllers were installed to the DME fuel system. The results show that ignition delay was shortened and combustion duration was extended when DME blended fuel is supplied. Despite of slightly higher NOx emission with DME blended fuel at equal conditions in comparison with those of diesel fuel, the engine showed lower HC and CO emission characteristics.