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The use of alternative fuel has many advantages and the main ones are its renewability, biodegradability with better quality exhaust gas emission, which do not contribute to raise the level of carbon dioxide in the atmosphere. The use of non-edible vegetables oils as an alternative fuels for diesel engine is accelerated by the energy crisis due to depletion of resources and increase in environmental problems. In Asian countries like India, great need of edible oil as a food so cannot use these oils as alternative fuels for diesel engine. However there are many issues related to the use of vegetable oils in diesel engine that is high viscosity, low calorific value, high self-ignition temperature etc. Jatropha curcas has been promoted in India as a sustainable substitute to diesel fuel. This research prepared micro emulsions of ethanol and Jatropha vegetable oil in different ratio and find out the physico-chemical parameters to compare with mineral diesel oil.