Over the past two decades considerable efforts have been undertaken to develop and introduce new alternative fuels for the conventional gasoline and diesel. Many alternative fuels, both liquid and gaseous, have been experimented and some have even been commercialized such as ethanol, natural gas, etc. Hydrogen has been considered as an excellent fuel to replace the petroleum-based fuels due to its clean burning characteristics. In the present experimental investigation, hydrogen was injected in the intake manifold and diesel fuel was injected inside the engine cylinder in the conventional manner. Hydrogen injection parameters such as injection timing, injection duration and quantity of hydrogen injected were optimized based on the performance and emission characteristics. Exhaust gas recirculation (EGR) technique was adopted to reduce the oxides of nitrogen emission. From the results it was observed that for hydrogen diesel dual fuel (DF) engine, the optimal operating parameters for hydrogen injection were start of injection at gas exchange top dead centre with injection duration of 30 degrees crank angle with the hydrogen flow rate of 7.5 litres per minute (Ipm). With EGR the optimized condition was found to be 20% for the entire load. The brake thermal efficiency with 20% EGR increases by 16% at 75% load as compared with diesel, while at full load it reduces by 8% due to the recirculation of exhaust gases that results in a reduction of intake oxygen concentration compared with part load. NOx emission decreases by five and half times, while other emissions increase by 1.4 times as compared with DF engine. Copyright (C) 2008 John Wiley & Sons, Ltd.