In present work, optimization of engine performance and emission were performed for different butanol diesel blends (5–20%) for various engine operating parameter using Taguchi DoE with AHP Optimization Technique. Single cylinder VCR Engine (CI) was fueled with different blend of diesel and butanol and tested for various CR, FIP and FIT at different load conditions (Idle, 1/3, 2/3 and full load). First 3-D interaction plot is drawn to understand the effect of different engine parameter on butanol-diesel blend combustion at different load conditions for NOx and Smoke formation. It’s observed that result vary with changes in operating parameter with different load conditions. Hence to optimize the engine operating parameter setting for correct butanol blend for all load conditions, AHP optimization with Taguchi DoE is performed and it’s found that butanol blend of 15% with CR of 15, FIP of 260bar and FIT of 25°bTDC is optimum combination to get lowest emission with good engine performance. The use of 15% butanol is found most suitable as it gives favorable engine performance and low emission for all test load conditions.