Diesel engines have the superior combustion efficiency and fuel economy that they are widely used for industry, heavyduty vehicles, etc. However, its exhaust emissions have become the major concerns due to their environmental impacts. Moreover, the depletion of fossil fuels is the main issue. Therefore, it is important to look for alternative sources of energy. Bio-diesel is one of the ideal energy which has proved to be ecofriendly for more than fossil fuels. The experimental tests analysed the engine performance and emission characteristics of a diesel engine using diesel and biodiesel blended of BD25, BD45 and BD65, in order to study the use of clean fuel to meet the increasingly stringent emission regulations. The engine performance was examined by using engine dynamometer while an exhaust gas analyzer was used to examine the emission characteristics. The effect of biodiesel on engine performance were lower to diesel through comparing their HP and torque but fuel consumption was slightly increased because of biodiesel has lower heating value and higher density than diesel. However, due to the better lubricity, the brake thermal efficiency of biodiesel was higher than diesel. The emission characteristics were strongly affected by the blending ratio of diesel and biodiesel. The results showed that the smoke opacity, hydrocarbons (HC) and carbon monoxide (CO) emissions decreased while the nitrogen oxides (NOX) slightly increased.