This study focuses on the fundamental characteristics of DME (Dimethyl Ether) combustion, aiming at the development of the new low-NOx combustion technologies suitable to DME. Combustion experiments using a diffusion burner of 11.6kW were conducted for characterizing DME through the comparison with the results of LPG and 13A-city gas. Experimental results demonstrate a high potential of DME as a boiler and a gas-turbine fuel. In this study, the concept of the low-NOx combustion, referred to as the tube-nested combustion, is applied to DME combustion. NOx emission of the DME combustion is extremely reduced by applying this combustion system.