The current automotive emission norms and environment protection measures are motivating to find alternative techniques and fuels. In this work, experimental investigations are carried out to study the performance characteristics of single-cylinder, four-stroke Direct Injection (DI) Compression Ignition (CI) engine using diesel with hydrogen peroxide (H2O2) as an additive with different proportions i.e. 5, 10, 15, 20, 25 (% by volume basis) and compared with conventional diesel fuel performance. The performance parameters like brake specific fuel consumption (BSFC), brake thermal efficiency (BTE), Mechanical efficiency (ME), Volumetric efficiency (VE), Exhaust gas temperature (EGT) and Smoke are evaluated to find optimum blend. From the experimental investigations, it is found that diesel engine with D85H15 shown reduction in BSFC, Exhaust gas temperature, Smoke and increase in BTE in comparison with conventional diesel operated engine.