This study aimed to investigate the effects on performance, emission, and combustion characteristics of adding biodiesel and bioethanol to diesel fuel. Diesel fuel and blend fuels were tested in a water-cooled compression ignition engine with direct injection. Test results showed that brake specific fuel consumption and volumetric efficiency increased by about 30.6% and 3.7%, respectively, with the addition of bioethanol to binary blend fuels. The results of the blend fuel's combustion analysis were similar to the diesel fuel's results. Bioethanol increased maximal in-cylinder pressure compared to biodiesel and diesel fuel at both 1400 rpm and 2800 rpm. Emissions of CO increased by an amount of about 80% for fuels containing a high level of bioethanol when compared to CO emissions for diesel fuel. Using biodiesel, NO emissions increased by an average of 31.3%, HC emissions decreased by an average of 39.25%, and smoke opacity decreased by an average of 6.5% when compared with diesel fuel. In addition, when using bioethanol, NO emissions and smoke opacity decreased by 55% and 17% on average, respectively, and HC emissions increased by an average of 53% compared with diesel fuel.