The present research work has embarked on to exploit the novel renewable and biodegradable source of energy from lemon fruit rinds. A systematic approach has been made in this study to find the suitability of lemon peel oil for internal combustion engines and gensets applications. Extracted lemon peel oil is found to exhibit comparatively very low viscosity, flash point and boiling point than that of conventional diesel. Various blends of lemon peel oil have been prepared with conventional diesel with volumetric concentration of 20%, 40%, 50% and 100% and their physical and chemical properties are evaluated for its suitability in direct injection diesel engine. Lower cetane index of lemon peel oil significantly influences the ignition delay period and peak heat release rate that lead to the penalty in NOx emissions. Interestingly, the diesel engine performance characteristics have been improved to a remarkable level with higher proportions of lemon peel oil in the blends. In addition, the reduction of BSCO, BSHC and smoke emission is proportional to the lemon oil concentration in the blends. Overall diesel engine characteristics indicated that lemon peel oil can partially or completely replace the petroleum diesel usage to a great extent in developing countries like India. (C) 2017 Elsevier Ltd. All rights reserved.