Diesel engines are widely used in both land and sea transportation due to lower fuel consumption. However, the harmful nitrogene oxide (NOx) and soot emissions from diesel engines are threatening human health. A lot of research done to reduce diesel emissions. Diesel emulsion fuels that are containing specific proportions of water, can reduce harmful ezhaust emissions significantly. Therefore, emulsion fuels has been one of the important research area in recent years. In this study, effects of the diesel emulsion fuels containing % 10 (E1) and % 15 (E2) water on engine performance an exhaust emissions has been investigated. In this study, unlike the other studies 1 % auxilary emulgator mono ethylene glycol has been used as solvent to water. While the E1 emulsion has partially reducing the exhaust emissions, engine performance has significiantly reduce. With using E2 emulsion carbon monoxide (CO), NOx and soot emissions has reduced 45.9 %, 26.9 % and 18.8 % respectively. However, the motor torque decreased by 15.72 %.