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The world is facing a twin crisis of environmental degradation and fossil fuel depletion. Alternative fuels are seems to be a promising solution for low exhaust emissions. Liquefied Petroleum Gas (LPG) is a prominent alternative fuel with well developed distributed infrastructure and increasing number of Gasoline engines are now being converted to run on LPG considering the fuel economy and low exhaust emissions. This paper describes the bi-fuel (LPG/Gasoline) concept on a single cylinder engine. Air cooled Direct Injection (DI) diesel engine converted to operate on gasoline engine with electronic ignition system and it is having feature to change the spark ignition timing w.r.t. speed. The compression ratio was also reduced suitable to SI operation. CFD analysis was performed to review and subsequently to increase the cooling capacity of the engine.