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In modern research, computer simulation has become a powerful tool for IC engine performance prediction as it saves time and is also economical. A proposed theory or an innovation can be analyzed quickly using a computer and the setting up cost for an experimental work can be postponed until optimization is achieved. For the purpose of evaluating performance of direct injection diesel engine operated with neat oxygenated fuel, the literature data were found confined to experimental investigations and insufficient to serve the purpose because of the large number of oxygenated fuels available for testing. Any improvement predicted in the combustion of the engine fuel will enhance the performance and reduce the emission simultaneously. Therefore oxygenated fuel combustion predictive capability is a acquit necessity at this point of time to screen the oxygenated fuels for better performance.