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DME as a fuel for compression ignition (diesel) engines has been actively studied for about ten years due to its characteristically low pollution and reputation as a “smokeless fuel”. During this time, the practical application is taking shape based on necessary tasks such as analysis of injection and combustion, engine performance, and development of experimental vehicles. At this moment, standardization of DME as a fuel was started under ISO in 2007. There are concerns regarding the impurities in DME regarding the mixing during production and distribution as well as their effect on additives for lubricity and odor. In this report, the effect of DME fuel impurities on performance of a DME powered diesel engine was investigated. The platform was a DME engine with common-rail fuel injection and was evaluated under partial load stable mode and Japanese transient mode (JE05) testing parameters.