Performance of the engine is considered to be as one of the most important factor for any automobile company. The current interest of most automotive industries circles around their vehicles fuel economy and tail pipe emissions. This paper presents a study which explores a conventional source of energy from biofuels which leads to better performance and emission characteristics and also provides an alternative fuel to diesel. The biodiesel fuel is obtained from the seeds of Polanga oil (Calophyllum Inophyllum) which are found mainly in southern coast of India. In the experiment the biodiesel is fumigated at 200C and diesel fuel was used as an ignition source. For this purpose an electronically controlled fuel fumigator was fabricated and used in this investigation. The performance and emission characteristics of the diesel engine were measured and the results were compared in presented in this paper. © IAEME Publication.