A naturally aspirated direct injection diesel engine with pump-line-nozzle injection system was retrofitted in order to be fueled with DiMethyl Ether (DME) which was recently discovered to be suitable as an alternative fuel for diesel engine. The modifications of the fuel system were based on the estimation of pump swept volume and injection quantity. The performance and the exhaust emissions were experimentally determined. The results were as follows. The engine efficiencies were slightly lower. The exhaust smoke, which is the index of particulate emission, was low enough to 1% opacity. The reduction in NO(subscript x) emission by 42% was observed as compared to the baseline diesel engine. However, HC and CO emissions were higher than those of the traditional diesel engine.