Abstract: The 0# diesel-ethanol-peanut oil are mixed by the volume ratio of 25:4:5 according to the miscibility phase diagram about the 0# diesel-ethanol-peanut oil. The bench test showed that, the fuel supply advance angle of the diesel engine should be increased if it is fueling the 0# diesel-ethanol-peanut oil. When the advance angle is 16.8℃, at the little load the consumption rate of the 0# diesel-ethanol-peanut oil is better than the 0# diesel, and the highest consumption rate is 19.55%;at the high load the result would be on the opposite. The diesel engine of the fuel economy and dynamic property are better than the 0# diesel when the diesel engine increases the advance angle and is at the high load.