This work aimed to evaluate a Diesel cycle engine operating in the original (only Diesel) and dual-fuel modes (Diesel / ethanol) in two levels of hydration of alcohol (70 and 93 degrees INPM). Speed was kept fixed at 1800 rpm. The purpose was to study the parameters of engine performance and analyze the heat release by combustion and heat exchanged to the cylinder’s walls. For parameters of performance, evaluation of thermal efficiency, specific fuel consumption and emissions were conducted. Initial activities consisted in trial tests on the engine / dynamometer in the two modes as mentioned above. The goal was to collect the variation of indicated cylinder pressure data, as well as fuel consumption, emissions and temperatures at strategic points. Secondly, performance parameters and heat release analysis was performed. For emissions, a decrease in PM was found at higher replacement rates; however, in the same condition a large increase in HC was obtained. At low loads and at higher replacement rates, NOx emissions were reduced. Thermal efficiency showed similar behavior at 70 and 93 degrees INPM. At high loads and at higher replacement rates a significant increase in thermal efficiency compared to the original mode and for low loads with higher replacement rates thermal efficiency was decreased. In high loads and at higher replacement rates conditions, the process of combustion occurred before in the dual fuel mode, due to earlier heat release compared to original mode (only Diesel). In the same conditions an increase of heat exchanged to the cylinder’s wall in both modes of hydration of alcohol (70 and 93 degrees INPM) compared to the original mode was obtained.