In this study, a feasibility test of liquid petroleum gas (LPG) compression ignition (CI) engine has been carried out to study the effectiveness of cetane enhancing additive: Di-tertiary-butyl peroxide (DTBP). Performance and emissions characteristics of a CI engine fuelled with DTBP blended LPG fuel were examined. Also, the effect of EGR (exhaust gas recirculation) on the combustion and emissions characteristics has been investigated. Results showed that stable engine operation over a wide range of the engine loads was possible. Exhaust emissions measurements showed that hydrocarbon were decreased with the blended fuel at enhancing cetane number. Furthermore, the combustion stability of LPG with a cetane number improver was equivalent to that of commercial Diesel fuel. Increasing the EGR rate leads to deteriorate the IMEP (indicated mean effective pressure) and increase the ignition delay. It was found that the exhaust emissions with the EGR resulted in a very large reduction in nitrogen oxides at the expense of higher THC and CO emissions. Considering the results of engine performance and exhaust emissions, LPG blended fuel of enhancing cetane number could be used as an alternative fuel for diesel in a CI engine.