The exhaust from vehicles pollutes the environment and contributes to global warming, acid rain, SMOG, respiratory and other health problems. In this work, Dimethyl Carbonate (DMC) is mixed as an additive to the diesel as pilot fuel, with focus on reduction of harmful exhaust emissions and maintaining high Brake Thermal Efficiency. The performance and emission characteristics of the diesel engine operated with diesel fuel mixed with DMC (5%) was studied. These results were compared with the neat diesel as base fuel. The experimental study found that diesel engines fueled with DMC had improved the combustion and emission performances without significant increase in NOx emissions. By using biodiesel, there are some disadvantages such as higher density, lesser heating value, high fuel consumption and high oxides of nitrogen. To avoid above disadvantages, the fuel additives help in playing a very important role in minimizing the drawbacks of biodiesel and in maintaining international fuel standards. Additives can be considered toward to improve combustion, fuel economy and to decrease the emissions. In particular, DMC may be a promising additive for diesel fuel owing to its high oxygen content, no carbon-carbon atomic bonds, suitable boiling points and solubility in diesel fuel.