This research investigated the effects of addition of ethanol to gasoline with the aim of improving the performance and emission characteristics of Spark Ignition (SI) engine. Four samples of gasoline-ethanol blend were prepared, namely 100% ethanol, 100% gasoline, 95% gasoline + 5% ethanol and 90% gasoline+10% ethanol, and were labeled sample A, B, C and D respectively. Physicochemical analysis was carried out on the four samples while sample B, C, and D were used to run a single cylinder, two stroke, air cooled SI engine to determine the performance characteristics of the engine at four engine speeds of 800rpm, 1000rpm, 1200rpm, and 1400rpm. An exhaust gas analyzer was used to analyze the exhaust emission to determine its constituents at no load. The research concluded that blending gasoline with ethanol not only improved the performance of the engine, it also yielded a friendlier emission. It also solves the problem of sole dependence on petroleum products to run SI engines with its attendant cost and environmental implications.