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One of the most promising fuel alternatives for Diesel is Methanol. The fuel is regarded advantageous owing to the easy availability of raw materials for its production, its low cost and high Oxygen content that has potential to reduce emissions of smoke, CO and PM. Methanol as a fuel blend with Diesel is non-viable as they are not readily miscible with each other. This paper expounds the engine performance and emission evaluation of blending Methanol with Diesel by using two methods that aid in overcoming phase separation. The experiments were performed in two stages. In the first stage, investigation of phase stabilization of Methanol in Diesel with suitable additive concentration was performed. This was performed to determine the optimum additive and its concentration for a Methanol share of up to 25% in Diesel-Methanol blends for a stabilization period of 30 days.