Oxygenated fuels like biodiesel and ethanol possess prominent characteristics as an alternative fuel for diesel engines. However, these fuels are corrosive in nature and hygroscopic. This might results in material incompatibility with the fuel supply system of a automobile. A fuel supply system comprises of a fuel reservoir, fuel pump, fuel strainer, fuel lines and fuel filter. The filter is responsible for removing contaminants from the fuel and prevents them from entering into the combustion chamber. A fuel filter consists of an outer metallic casing that holds the filter membrane. Filter membrane is the filtering element that traps the contaminants. The operational hours of the filter membrane depend on the quality of fuel employed. The conventional filter is designed for fossil diesel operation and hence the filter life might degrade earlier in the case of oxygenated fuels like biodiesel or ethanol. The proposed work focuses on the impact of oxygenated fuels on the filter membrane and its flow characteristics. Two tests, pressure difference and contaminant retention test are carried out in accordance with Japanese standard D1617:1998. The experimental setup simulates the real engine operating conditions of a diesel supply system. It consists of a fuel reservoir, a 12V Bosch fuel pump, pressure transducer, thermocouple sensor and a flow meter. Also,qualitative inspectionwill be performed to analyse the effect of oxygenated fuel on the filter membrane.