Biodiesel fuel as an alternative fuel for diesel engine has a great possibility to solve the problems such as air pollution. It is a domestically produced, renewable fuel that can be manufactured from vegetable oils, used vegetable oils, or animal fats. In this study, the usability of biodiesel fuel derived from rice bran oil as an alternative fuel for diesel engines was investigated in agricultural diesel engine. Emissions were characterized with neat biodiesel fuel and with a blend of biodiesel fuel and conventional diesel fuel. Since the biodiesel fuel includes oxygen of about 11%, it could influence the combustion process strongly. So, the use of biodiesel fuel resulted in lower emissions of carbon monoxide, carbon dioxide, and smoke emissions without any increase of oxides of nitrogen. It is concluded that biodiesel fuel can be utilized effectively as a renewable and an environmentally Innocuous fuel for diesel engine.