Among the alternative fuels existing for spark-ignition engines, ethanol is considered worldwide as an important renewable fuel when mixed with pure gasoline because of its favorable physicochemical properties. An in-depth and updated investigation on the issue of CO and HC engine out emissions related to use of ethanol/gasoline fuels in spark-ignition engines is therefore necessary. Starting from our experimental studies on engine out emissions of a last generation spark-ignition engine fueled with ethanol/gasoline fuels, the aim of this new investigation is to offer a complete literature review on the present state of ethanol combustion in last generation spark-ignition engines under real working conditions to clarify the possible change in CO and HC emissions. In the first section of this paper, a comparison between physicochemical properties of ethanol and gasoline is examined to assess the practicability of using ethanol as an alternative fuel for spark-ignition engines and to investigate the effect on engine out emissions and combustion efficiency. In the next section, this article focuses on the impact of ethanol/gasoline fuels on CO and HC formation. Many studies related to combustion characteristics and exhaust emissions in spark-ignition engines fueled with ethanol/gasoline fuels are thus discussed in detail. Most of these experimental investigations conclude that the addition of ethanol with gasoline fuel mixtures can really decrease the CO and HC exhaust emissions of last generation spark-ignition engines in several operating conditions.