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Producing and using renewable fuels for transportation is one approach for a sustainable energy for India, as well as the rest of the world. In the transportation sector, alcohols produced from biomass shows promise as an alternative fuel for spark ignited (SI) engines because of its high octane number. In the present work, methanol was used as an alternative fuel. In two stroke engines, In-cylinder injection of fuel results in excellent fuel economy potentional with lesser emissions. The objective of this work was to study the effect of injection timing and compression ratio on the performance and emissions of the engine. An air cooled, constant speed, single cylinder, two stroke, spark ignition scooter engine was modified to work in fuel injection mode. The performance of the modified engine was compared with the base engine.