The effect of gasoline-ethanol blends on performance and NOx emission was investigated in a SI engine with port and direct fuel injection systems. The 1-D cycle simulation program of GT-Power was utilized to analyze the performance of thermodynamic cycle. The results showed that the brake torques are increased with the addition of ethanol to gasoline because of the improvements of volumetric efficiency. The engine with direct ethanol blends injection system has more power than that with port gaoline injection system, which is caused by the higher latent heat of ethanol.