Alternative fuel has become very significant and has an important role to play for both spark ignition and compression ignition engines, so the need to trim down dependency on gasoline as a fuel and its economic aspects has emerged as the reason of prime importance. Various investigations carried out have primarily focused on using alternative fuel to see the diminishing effect on the fuel consumption. The aim of this review is to study and analyze the range of opportunities and future prospects of introducing blend of gasoline-ethanol, gasoline with all other alcohol derivative and subsequent alternative fuel in varying percentage ratios in the existing SI engines by diagnosing various aspects such as air-fuel ratio, operating cylinder pressure, ignition timing and compression ratio related to the performance parameters only.