DME(Dimethyl ether) is an oxygenated fuel with a octane number higher than that of diesel oil. It meets the ULEV emission regulation and reduces the smoke to almost zero when used in a diesel engine. In the present study, engine performance and exhaust emissions were investigated with a conventional DI diesel engine which has a jerk type injection pump. Test results showed that the power with DME were almost same as that of pure diesel oil, and the brake thermal efficiency increased a little. Also, smoke index from DME engine showed nearly zero level, but NO$_{x}$ was increased compare to diesel oil.l.