A coal slurry fuel supply and purge system for a locomotive engines is disclosed which includes a slurry recirculation path, a stand-by path for circulating slurry during idle or states of the engine when slurry fuel in not required by the engine, and an engine header fluid path connected to the stand-by path, for supplying and purging slurry fuel to and from fuel injectors. A controller controls the actuation of valves to facilitate supply and purge of slurry to and from the fuel injectors. A method for supplying and purging coal slurry in a compression ignition engine is disclosed which includes controlling fluid flow devices and valves in a plurality of fluid paths to facilitate continuous slurry recirculation and supply and purge of or slurry based on the operating state of the engine.