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Facing more and more stringent regulations, new solutions are developed to decrease pollutant emissions. One of them have shown promising and relevant results. It consists of the use of ethanol as a blending component for diesel fuel Nevertheless, the addition of ethanol to Diesel fuel affects some key properties such as the flash point. Consequently, Diesel blends containing ethanol become highly flammable at a temperature around ambient temperature. This study proposes to improve the formulation of ethanol based diesel fuel in order to avoid flash point drawbacks. First, a focus on physical and chemical properties is done for ethanol based diesel fuels with and without flash point improvement. Second, blends are tested on a passenger car diesel engine, under a wide operating range conditions from low load low speed up to maximum power. The main advantage of the ethanol based fuels generate low smoke level, that allows using higher EGR rate, thus leading to an important NOx decrease.