At present the two third of the world energy demand is met by fossil fuels. Limited reserves of fossil fuels and their unequal distribution have resulted the fuel cost to raise several folds. The increased automobile population and industrialization have further increased the fuel demand as a result the world is facing twin crisis of fossil fuel depletion and environmental degradation. Conventional hydrocarbon fuels used by internal combustion engines, are dominating many fields like transportation, agriculture, and power generation which leads to pollutants like HC (hydrocarbons), SO2 (sulphur oxides) and particulates which are highly harmful to human health. Conventional fuels are obtained from limited reserves which are getting scarce day by day. To go a long way in finding solutions to future fuel needs the answer surely lies in Alternative Fuels. This paper reviews alternate fuels such as biodiesel,Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), alcohols, hydrogen etc. and certain new fuels like Algae, Ammonia, Liquid Nitrogen, Dimethyl Ether and Diethyl Ether, Acetylene which have a great potential to act as future alternate fuels for IC engines and can play a vital role in mitigating the energy crises.