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Oxygen enhancement in a direct injection (DI) diesel engine was studied to investigate the potential for particulate matter and NOx emissions control. The local oxygen concentration within the fuel plume was modified by oxygen enrichment of the intake air and by oxygenating the base fuel with 20% methyl t-butyl ether (MTBE). The study collected overall engine performance and engine-out emissions data as well as in-cylinder two-color measurements at 25% and 75% loads over a range of injection timings. The study found oxygen enhancement, whether it be from intake air enrichment or via oxygenated fuels, reduces particulate matter, the effectiveness depending on the local concentration of oxygen in the fuel plume. Since NOx emissions depend strongly on the temperature and oxygen concentration throughout the bulk cylinder gas, the global thermal and dilution effects from oxygen enrichment were greater than that from operation on oxygenated fuel.