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N-butanol, as a biomass-based renewable fuel, has many superior fuel properties. It has a higher energy content and cetane number than its alcohol competitors, methanol and ethanol. Previous studies have proved that n-butanol has the capability to achieve lower emissions without sacrifice on thermal efficiency when blended with diesel. However, most studies on n-butanol are limited to low blending ratios, which restricts the improvement of emissions. In this paper, 80% by volume of n-butanol was blended with 20% by volume of n-heptane (namely BH80). The influences of various engine parameters (combustion phasing, EGR ratio, injection timing and intake pressure, respectively) on its combustion and emission characteristics are tested at different loads. The results showed that when BH80 uses more than 40% EGR, the emitted soot and nitrogen oxides (NOx) emissions are below the EURO VI legislation.