Need to use renewable energy in the form of ethanol fuel derived using agriculture waste to reduce load on petrol derived from crude oil, which is available in limited quantity. This is mostly due to stock of petroleum product are depleting day by day, hence more use of renewable fuels gets attraction in developing country like India. In recent years, Considerable efforts made to develop and introduce alternative renewable fuel, to replace conventional petroleum-base fuels. The main objective of the current work id to investigate influences of blends of ethanol-petrol blend used in IC engine performance using energy and exergy analysis. Here, experimental work divided into mainly two parts. In first part, Engine performance carried out using E0, E25, E40 and E100 blends of ethanol-petrol blends. In other part, exergy analysis carried out. Experimental test set-up developed in laboratory. The stationary petrol engine was run in laboratory at a medium speed, variable load condition experienced in most urban driving conditions and various measurements like fuel flow, exhaust temperature, exhaust emission measurement and exhaust smoke test were carried out. The fuel properties of biodiesel such as kinematic viscosity, calorific value, flash point, carbon residue and specific gravity investigated. Heat balance sheet and availability calculated for different condition like E0, E25, E40 and E100 blends of ethanol-petrol blends.