The interest in ethanol as a fuel for Central America arises mainly from the high dependence on imported liquid fuel, while some countries in the region are exporting ethanol produced from sugar cane, for using as fuel abroad. This paper presents a technical and economic evaluation of gasohol introduction in six Central America countries (Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama), exploring different scenarios of ethanol production (from molasses and from sugar cane juice) and use (10% and 25% blends with gasoline), and comparing the relative dimensions of sugar industry and gasohol assumed fleet. The main results are: a) just using the exhausted molasses available from current sugar production, with a yield of 6 L/t of cane processed, there could be an annual production of 183 ML of anhydrous ethanol (5.3% of actual gasoline demand); and b) gasohol with 10% of ethanol could be produced by the use of direct juice. Assuming yields of 75 tonnes cane/ha and 70 litres ethanol/tonne, it would be necessary to plant an additional 65 000 hectares, which means an increase of 16% on the presently cultivated area. The situation varies according to the country, and it seems to be more favourable for gasohol programs in Guatemala, El Salvador and Costa Rica. Some impact indicators are evaluated in this work, and they show that the gasohol option should be carefully considered in the region.