This review paper covers potential alternative fuels for automotive engine application for both spark ignition (SI) and compression ignition (CI) engines. It also includes applications of alternative fuels in advanced combustion research applications. The representative alternative fuels for SI engines include compressed natural gas (CNG), hydrogen (H2) liquefied petroleum gas (LPG), and alcohol fuels (methanol and ethanol); while for CI engines, they include biodiesel, di-methyl ether (DME), and jet propellent-8 (JP-8). Naphtha is introduced as an alternative fuel for advanced combustion in premixed charge compression ignition. The production, storage, and the supply chain of each alternative fuel are briefly summarized, and are followed by discussions on the main research motivations for such alternative fuels. Literature surveys are presented that investigate the relative advantages and disadvantages of these alternative fuels for application to engine combustion. The contents of engine combustion basically consist of the combustion process from spray development, air–fuel mixing characteristics, to the final combustion product formation process, which is analyzed for each alternative fuel. An overview is provided for alternative fuels together with summaries of engine combustion characteristics for each fuel, in addition to its current distribution status and future prospects.