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N-butanol is a promising alternative fuel which needs no engine modification when used as a blend with diesel. The miscibility of n-butanol with diesel is excellent in a wide range of blending ratios. N-butanol has high oxygen content and a comparable energy content, specific gravity and viscosity to that of diesel, which makes it attractive for diesel engines as an alternative fuel. An experimental investigation was conducted to assess the performance of a new generation passenger car with respect to power, fuel economy (FE) and mass emission using 5, 10 and 20 percent (by vol.) n-butanol blends with diesel (NB). Computer controlled DC motor driven chassis dynamometer, AVL AMA I60 mass emission measuring system and AVL FSN smoke meter were used for measuring wide open throttle (WOT) power, road load simulation (RLS) fuel economy, mass emissions and smoke in WOT and steady speed driving conditions.