A sequential port injection, lean-burn, fully electronically-controlled compressed natural gas (CNG)/Diesel dual-fuel engine has been developed based on a turbo-charged and inter-cooled direct injection (D.I.) diesel engine. During the optimization of engine overall performance, the effects of pilot diesel and pre-mixed CNG/air mixture equivalence ratio on emissions (CO, HC, NOx, soot), knocking, misfire and fuel economy are studied. The rich and lean boundaries of the pre-mixed CNG/air mixture versus engine load are also provided, considering the acceptable values of NOx and THC emissions, respectively. It is interesting to find that there is a critical amount of pilot diesel for each load and speed point, which proved to be the optimum amount of pilot fuel. Any decrease in the amount of pilot diesel from this optimum amount results in an increase of NOx emissions, because the pre-mixed CNG/air mixture must be made richer, otherwise THC emissions would increase. However, the soot emissions remain almost unchanged at a very low level.