This paper presents the details of development of a biodiesel production test rig based on hydrodynamic cavitation followed by results of experimental investigation carried out on a four cylinder direct injection, water cooled diesel engine operating on diesel and biodiesel blend of Citrullus colocyntis (Thumba) oil. The experiment covers a wide range of engine rpm. Results show that biodiesel of Thumba oil produced through hydrodynamic cavitation technique can be used as an alternative fuel with better performance and lower emissions compared to diesel. The most significant conclusions are that (i) Biodiesel production through hydrodynamic cavitation technique seems to be a simple, efficient, time saving, eco-friendly and industrially viable process. (ii) 30% biodiesel blend of Thumba oil shows relatively higher brake power, brake thermal efficiency, reduced bsfc and smoke opacity with favourable p-theta diagram as compared to diesel. (C) 2009 Elsevier Ltd. All rights reserved.