This paper investigated experimentally the effect of using acetic aced-ethanol-gasoline blended fuel on SI engine performance and exhaust emissions. A two stroke, SI engine (non road - type Gunt CT-153) was used for conducting this study. The performance tests were conducted for fuel consumption, volumetric efficiency, brake power, engine torque and brake specific fuel consumption. The exhaust emissions were analyzed for carbon monoxide (CO), and unburned hydrocarbons (HC), using ethanol/acetic acid/gasoline blends with different percentages of fuel. The engine speed was varied from 2000 rmp to 6000 rmp with an increment of 500 rmp. During the experimentation the times for consumption of 75 m3 of fuel were recorded. The experimental outcomes were analyzed, and showed that the carbon monoxide CO and hydrocarbons HC emission concentration in the engine exhaust decreases.