A combustion control strategy is proposed for diesel engine to reduce PM and NOx emissions significantly, which adopts some technologies including internal exhaust gas recirculation (EGR), split spray, adjustable fuel delivery advance angle and the application of alternative fuels. Based on this strategy, a flexible fuel engine has been developed. The experimental results show that this engine can be fueled with diesel fuel, alcohol, dimethyl carbonate (DMC), etc. It works with extremely low levels of particulate matter (PM) and NOx, 2~3% higher effective thermal efficiency on moderate and high loads when alternative fuels are used. This engine not only has lower exhaust emissions, but also can be fueled with those alternative fuels, which are difficult to be ignited by compression.