Lean combustion and exhaust emission characteristics in a ethanol fueled spark-ignited engine according to ethanol-gasoline fuel blending ratio were investigated. The test engine was $1591cm^3$ and 10.5 of compression ratio SI engine with 4 cylinders. In addition, lambda sensor system was connected with universal ECU to control the lambda value which is varied from 1.0 to 1.5. The engine performance and lean combustion characteristics such as brake torque, cylinder pressure and rate of heat release were investigated according to ethanol-gasoline fuel blending ratio. Furthermore, the exhaust emissions such as carbon monoxide (CO), unburned hydrocarbon (HC), nitrogen oxides ($NO_x$) and carbon dioxide ($CO_2$) were measured by emission analyzers. The results showed that the brake torque, cylinder pressure and the stability of engine operation were increased as ethanol blending ratio is increased. Brake specific fuel consumption (BSFC) was increased in higher ethanol blending ratio while brake specific energy consumption (BSEC) was decreased in higher ethanol blending ratio. The exhaust emissions were decreased as ethanol blending ratio is increased under overall experimental conditions, however, some specific exhaust emission characteristics were mainly influenced by lambda value and ethanol-gasoline fuel blending ratio.