In considering environment and energy requirement, bio-alcohol is an attractive alternative fuel for automobile. The effects of alcohol blending with MTBE on the TOYOYA 4AFE gasoline engine combustion characteristics were investigated. The engine performances, fuel consumptions and exhaust emissions were also studied. The test results showed that: MTBE and alcohol could increase fuel octane number and decrease heating value. Combustion pressures for oxygenated fuels were lower than base fuel. CO emissions were decreased with increasing throttle open angle. HC emissions were low for oxygenated fuel at 2500rpm. A lower NO emissions were measured for oxygenated fuels.