All over the world air pollution has become a big threat for future of the next generation and as such researchers are working relentlessly to find an alternative clean fuel in other green fuel recourses for running CI engine. Using oxygenated additive with diesel in CI engine is the most promising technology for improving the performance and reducing the emissions. Diethyl ether and ethanol both are type of oxygenated fuel and capable of reducing the exhaust emission and improving the combustion process. In this study, performance and emission analysis has been carried out with the blend of diesel (80%) +diethyl ether (10%) +ethanol (10%) in single cylinder variable compression ratio diesel engine. The main purpose of this study was to understand the effect of compression ratio and injection pressure on the performance and emission of the CI engine. From the result, it was found that engine at 19.5 CR and 210 IP give the best results for BTE, BSFC, NOx and smoke.