The Sasol Slurry Phase Distillate (SPD) process provides an opportunity to convert the world's abundant natural gas reserves into a conventional liquid fuel that is easily transportable and marketable. The high quality diesel produced by the Sasol SPD process could either be used on its own or as a blending component. Blending Sasol SPD diesel with crude oil derived diesel will improve the properties of the crude oil derived diesel so that it can meet the more stringent, environment and engine technology driven, diesel quality and emissions specifications. The properties of the Sasol SPD diesel and blends of Sasol SPD diesel and an on-highway, 2D-grade diesel fuel from the USA were compared to current and proposed specifications for high quality diesel which included CARB and Premium Diesel specifications from the USA. The compatibility of the Sasol SPD diesel with various elastomers was found to be similar to other low aromatic diesel fuels. Corrosion tests showed that no corrosion should occur when the diesel is used either neat or as a blending component. The lubricity properties of Sasol SPD diesel are similar to other severely hydrotreated (low sulphur) diesels in the market. Furthermore, the Sasol SPD diesel was found to have very low toxicity and is readily biodegradable.