Gasoline direct injection (GDI) engines have very attractive potential for improving fuel economy and exhaust emissions, especially disadvantages of increased fuel consumption at part load. In this research, a study has been made on the investigations of stratified lean combustion in a wall-air guided type spark-ignition single cylinder optical research engine. Experiments were conducted at constant load (NIMEP 3 bar) using ethanol as fuel, for a wide range of injection, ignition and mixture formation parameters. Engine efficiency and combustion stability were evaluated at each excess air ratio. Optical visualization illustrated the spray behavior and flame propagation. Specific fuel consumption improvement was achieved with lean burn mixtures. Thus, combustion analysis data based on in-cylinder pressure measurement provide useful data for ethanol GDI engine development.