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Alternative fuels for automotive engine application for both spark ignition (SI) and compression ignition (CI) Engines.Internal combustion (IC) engine is a heat engine that converts chemical energy into mechanical energy, in the form of rotating shaft. Chemical energy of the fuel is first converted to thermal energy by means of combustion or oxidation with air inside the engine.And also each alternative fuel are briefly summarized, and are followed by discussions on the main research motivations for such alternative fuels. And also explained about the detailed information about internal parts IC engine with their advanced development in alternative fuel sector. This paper study that biodiesel-diesel-ethanol blend can be used as a substitute of petro-diesel fuel to reduce dependency on fossil fuel as well as the exhaust emissions of the engine.