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Butanol, which is a renewable biofuel, has been regarded as a promising alternative fuel for internal combustion engines. When blended with diesel and applied to pilot ignited natural gas engines, butanol has the capability to achieve lower emissions without sacrifice on thermal efficiency. However, high blend ratio of butanol is limited by its longer ignition delay caused by the higher latent heat and higher octane number, which restricts the improvement of emission characteristics. In this paper, the potential of increasing butanol blend ratio by adding hot exhaust gas recirculation (EGR) is investigated. 3D CFD model based on a detailed kinetic mechanism was built and validated by experimental results of natural gas engine ignited by diesel/butanol blends. The effects of hot EGR is then revealed by the simulation results of the combustion process, heat release traces and also the emissions under different diesel/butanol blend ratios.