Bioethanol is the leading engine biofuel over the world and it is also the first engine biofuel, which has a commercial application area in Turkey. It has a lot of environmental and economical advantages. Bioethanol can be used directly or as a fuel blend. This study summarizes the present position of bioethanol in the world and in Turkey. Application alternatives and impacts to the fuel sector of using bioethanol are presented, too. In the experimental part, 2% and 5% v/v bioethanol are blended with diesel fuel (E-Diesel) and the fuel properties are determined according to the standard TS 3082 (EN 590). As a result, E-Diesel’s are presented as alternative diesel fuel candidates.