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The use of alcohol-gasoline blends enables the favorable features of alcohols to be utilized in spark ignition (SI) engines while avoiding the shortcomings of their application as straight fuels. Eucalyptus and orange oils possess high octane values and are also good potential alternative fuels for SI engines. The high octane value of these fuels can enhance the octane value of the fuel when it is blended with low-octane gasoline. In the present work, 20 percent by volume of orange oil, eucalyptus oil, methanol and ethanol were blended separately with gasoline, and the performance, combustion and exhaust emission characteristics were evaluated at two different compression ratios. The phase separation problems arising from the alcohol-gasoline blends were minimized by adding eucalyptus oil as a co-solvent. Test results indicate that the compression ratio can be raised from 7.4 to 9 without any detrimental effect, due to the higher octane rating of the fuel blends.