Several alternative fuels like hydrogen, CNG, LNG, producer gas, biogas, alcohols, vegetable oils etc. are being explored around the globe with a view to supplement fuels and reduce environmental pollution. The alcohol fuels could not be exploited on a large scale because the petroleum fuels were abundant, cheap and easy to produce. Several vegetable oils are being produced in the country. Among vegetable oils rice bran oil can be used as CI engine fuel. Rice bran oil and its ester have been used satisfactorily for partial replacement of the diesel fuel. Use of vegetable oil and ethanol blend gave satisfactory results. But ester of vegetable oil and ethanol has never been used before as fuel in CI engines. The concept of employing alcohol especially ethanol with ester of vegetable oils as a fuel in engines is totally new and revolutionary. This study helped to assess the feasibility of using blend of rice bran oil methyl ester and ethanol as fuel in a diesel engine.