A new oxygenate of di-(2-ethoxyethyl) carbonate was synthesized, and its structure was identified by FT-IR, 1H NMR and GC-MS analyses. The effects of addition of the substance to diesel fuel on fuel properties and engine performance were studied. Results showed that this oxygenate is miscible with individual hydrocarbons in any proportion under normal temperature of 25°C. When di-(2-ethoxyethyl) carbonate is introduced to a diesel fuel, kinematic viscosity does not change notably, smoke point increases linearly. Flash point and solidifying point decline remarkably even at low content level of 5%(v) of the oxygenate, whereas they do not decrease further notably with its content increasing. The compound does not exert corrosion effect on cupric metal. When a diesel engine was fueled with the diesel fuel containing 25%(v) of the oxygenate. CO emissions were decreased by more than 50%, smoke was reduced by up to 83.8%, NOx showed no noticeable change, and unburned HC emissions were reduced by 30% to 60%. At engine speeds of 1800rpm and 2300rpm, fuel consumption respectively increased by 3.3%-7.7% and 2.4%-8.1% at content of 15%(v), and increased by 4.2%-16.5% and 5.3%-15.1% at content of 25%(v) of the substance. Energy consumption, however, was decreased respectively by 1.2%-5.3% and 0.9%-6.1% at content of 15%(v), and was reduced respectively by 0.7%-15.5% and 0.5%-9.0% at content of 25%(v). Power output dropped by 15.6% when the engine burnt the diesel fuel containing 25%(v) of the new oxygenate.