Diesel engines are primarily used in the power generation sector owing to their characteristics of high efficiency and power, but account for higher emissions, mainly NOX and PM. Ethanol being a bio-based alternate fuel, holds the potential to be one of the most promising fuels for blending with diesel for emissions reduction, primarily due to its oxygenated nature, which results in a lower carbon content than diesel. In this study, four different ethanol-diesel blends have been developed for investigation (a) 5% (v/v) ethanol/diesel blend (E5D95), (b) 10% (v/v) ethanol/diesel blend (E10D90), (c) 15% (v/v) ethanol/diesel blend (E15D85) and (d) 20% (v/v) ethanol/diesel blend (E20D80). Additives and couplers were developed, as well, to address the problem of corrosion, cetane number reduction and blend stability. A detailed physico-chemical characterization was performed to measure various critical properties (density, cetane number, calorific value, flash point, etc.) of various diesel