Bio-diesel is an alternative fuel to diesel and is widely used in CI engines to reduce exhaust gas emissions which in turn helps in reduction of environmental degradation. But the problem with Biodiesel usage results in higher NOx emissions when compared to diesel engines. The objective of this work is to reduce the NOx emissions with the help of Exhaust Gas Recirculation (EGR).To investigate this, a single cylinder four stroke air cooled direct injection(DI) diesel engine was used. HC, CO, NOx and smoke concentration of the exhaust gas were measured to estimate the emissions. Various engine performance parameters are carried out and analyzed for different Bio-Diesel blends and neat Diesel. Results show reduction in NOx emissions with the help of EGR with little compromise in power output. © 2013 IEEE.