This paper investigates the scope of utilizing biodiesel developed from both through the methyl as well as ethyl alcohol route (methyl and ethyl ester) from Karanja oil as an alternative diesel fuel. The major problem of using neat Karanja oil as a fuel in a compression ignition engine arises due to its very high viscosity. Transesterification with alcohols reduces the viscosity of the oil and other properties have been evaluated to be comparable with those of diesel. In the present work, methyl and ethyl esters of Karanja oil were prepared by transesterification using both methanol and ethanol. The physical and chemical properties of ethyl esters were comparable with that of meth I esters. However, viscosity of ethyl esters was slightly higher than that of methyl esters. Cold flow properties ofethyl esters were better than those of methyl esters. Performance and exhaust emission characteristics of the engine were determined using petrodiesel as the baseline fuel and several blends of diesel and biodiesel as test fuels. Results show that methyl esters produced slightly higher power than ethyl esters. Exhaust emissions of both esters were almost identical. These studies show that both methyl and ethyl esters of Karanja oil can be used as a fuel in compression ignition engine without any engine modification. (C) 2008 Elsevier Ltd. All rights reserved.