In this study, blending oils of diesel oil and butanol were used as fuel oil for diesel engine to measure combustion pressure, fuel consumption, air ratio and exhaust gas emission due to various operating conditions such as engine revolution and torque. Using these data, the results of analyzing the engine performance, combustion characteristics and exhaust emission characteristics such as NOx (nitrogen oxides), CO2 (carbon dioxide), CO (carbon monoxide) and soot were as follows. The fuel conversion efficiency at each load was highest when driven in the engine revolution determined by a fixed pitch propeller law. Except 30% butanol blending oil, fuel conversion efficiency of the other fuel oils increased as the load increased. Compared to diesel oil, using 10% and 20% butanol blending oil as fuel oil was advantageous in terms of thermal efficiency, but it did not have a significant impact on the reduction of exhaust gas emissions. On the other hand, future research is needed on the results of the 20% butanol blending oil showing lower or similar levels of smoke concentration and carbon monoxide emission rate other than those types of diesel oil.