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This research focuses on the feasibility of using diesel-palm fatty acid distillate ethyl ester (PFADE)-ethanol in a direct injection diesel engine without any major modifications. Hydrous ethanol was selected for blending in diesel to produce diesohol. The palm fatty acid distillate (PFAD) and PFADE were directly blended in ethanol and diesel. A comparative study of the phase stability in diesel-PFAD-hydrous ethanol and diesel-PFADE-hydrous ethanol was performed with varied blend proportions. The fuel properties, emissions (CO, CO2, NO