A single cylinder water cooled prechamber diesel engine was used to evaluate SRC-II coal derived fuel with respect to performance and emissions. SRC-II could only be burnt in blend with diesel fuel. Changes of characteristics were shown in relation to SRC-II blend ratio. About 25% blend of SRC-II was the limit available to the contemporary prechamber diesel engine. It was defined that cetane improver and heat insulation of prechamber were effective to expand operating range for low cetane fuel.