Diesel fuel exhibits excellent combustion characteristics and stability. However, diesel use is becoming restricted because of its associated environmental problems. Fuel emulsification, which increases efficiency and reduces pollution, became the solution of environmental problem. In this study, five water:diesel emulsions with mass ratios (0.3, 0.6, 1.0, 1.2, and 1.5) via ultrasonication were synthesized with and without surfactant. The optimal water:diesel ratio (=1:1) of an emulsion containing the surfactant was found by analyzing fuel concentration, mixing time, and viscosity. The combustion characteristics of single-droplet optimal emulsions were studied through ignition delay, burning rate, and total droplet lifetime at high temperature (400−700 °C) and pressure (1−15 bar), and micro-explosion phenomenon was observed. Although the ignition delay of emulsion increased, the total lifetime of the emulsion droplet was lower than that of diesel under 5 bar, 600 °C condition.