In a direct injection compression ignition engine (CIE) with dual injection systems, the performance tests and the combustion analysis at varied ethanol injection timing were performed respectively, which with ethanol as the main fuel injected by one injection system and diesel fuel as the igniting fuel injected by another injection system. The test results show that with the igniting fuel injected at 21°CA BTDC, the ethanol fuel injection timing can be earlier than the ignition fuel injection timing. The fuel economy of dual-fuel CIE approaches to that of the baseline diesel engine when the ethanol fuel injection timing is 25°CA BTDC. The maximal power output corresponding to the ethanol injection timing is 29°CA BTDC. The maximum statistical in-cylinder combustion pressure of test engine decreases with the advance of the ethanol injection timing at light load conditions, but it increases with the injection advance at heavy load conditions. The combustion pressure standard deviation increases with the advance of the ethanol injection timing, and correspondingly, the engine operation becomes more and more unsteady. When the ethanol injection timing is advanced to 31° CA BTDC, the injected igniting diesel fuel can not ignite the main ethanol fuel reliably.