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The downsized ethanol Spark Ignited Direct Injection (SIDI) engine has proven to be one of the most promising concepts to reduce both the fuel consumption and pollutant emissions. In addition to this engine concept, the use of Fully Variable Camshaft Timing (FVCT) can provide the Internal Exhaust Gas Recirculation (I-EGR) into the combustion chamber. The Cooled Exhaust Gas Recirculation (Cooled - EGR) technique, has been adopted in order to reduce the NOx formation rate. However, through the FVCT system, acceptable levels of charge dilution by I-EGR can be achieved resulting in less fuel consumption and pollutant emissions. In this paper, the I-EGR technique has been investigated by carrying out an experimental analysis of a downsized ethanol SIDI engine running on boosted and unboosted conditions. The results at part load operation present a gain on fuel conversion efficiency due to the I-EGR dilution and the use of de-throttling technique.