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As the issue of oil shortage and air pollution caused by automotive engine emissions become more and more serious day by day, researchers and engineers from all over the world are seeking for alternative fuels of lower pollution and renewable nature. This paper discusses in detail the feasibility of fueling gasoline engines with Butanol-gasoline blends. Besides the production, transportation, storage, physical and chemical properties of Butanol-gasoline blends, the combustion characteristics were analyzed as well. As the result Butanol was considered an excellent alternative fuel for gasoline engines, with many unique advantages superior to Natural Gas, LPG, Carbinol and Ethanol, the latter are widely studied at present time. In order to validate the above conclusions in engine application, engine dyno tests were conducted for a gasoline engine fueled with different concentrations of Butanol blend ranging from 10% to up to 35%.