There are few investigations to change wood biomasses to the industrially available energy, so that a new conversion technology of biomass to liquid fuel has been established by the direct liquefaction process. However, cellulosic liquefaction fuel (for short CLF) cold not mixed with diesel fuel. In this study, the plastic was mixed with wood to improve the solubility of CLF to diesel fuel. CLF made by the direct co-liquefaction process could be stably and completely mixed with diesel fuel in any mixing ratio and CLF included 2 wt.% of oxygen. The test engine was an air-cooled, four-stroke, single cylinder, direct fuel injection diesel engine. In the engine starting condition test, the ignition timing of 5 wt.% CLF mixed diesel fuel was slightly delayed at immediately after the engine started, however the ignition timing was almost the same as diesel fuel after the engine was warmed-up. In ordinary engine performance test, the combustion characteristics, engine performances and exhaust gas emissions were almost similar to those of diesel fuel up to mixing ratio of CLF of 20 wt%. However, THC was decreased as the weight mixing ratio of CLF increased. Therefore, CLF can be practically used as a good additive for diesel engine.