A dual fuel engine fueled with methane from an inlet port and ignited with diesel fuel was prepared. This study focuses on the effects of early injection and exhaust gas recirculation (EGR) on the characteristics of combustion and exhaust emissions. The injection timing was changed between TDC and 50 degrees before the TDC. In the early injection timing, smoke was never seen and hydrocarbons were smaller compared with those at the normal injection timing. However, the combustion becomes too early to obtain an appropriate torque when the equivalence ratio increases. Then, moderate EGR was very effective to force the combustion to retard with lower NOx, higher thermal efficiency and almost the same hydrocarbons and carbon monoxide. The engine operated even under the condition of stoichiometric mixture. Copyright © 2002 SAE International.