Biodiesel from Palmarosa oil can be used as an alternative fuel in diesel engine. Experimental investigation was carried out to investigate the performance and emission characteristics of a diesel engine fuelled by biodiesel derived from Palmarosa oil and its blends of 25%, 50% and 100% and standard diesel fuel separately. In this study, the chemical composition of biodiesel derived from Palmarosa oil was determined by using GC-MS (Gas chromatography-mass spectrum) and FT-IR (Fourier transformed infrared) spectroscopic techniques. The results indicated the production of lower CO emission (up to 19.02%), HC emission (up to 31.25%) and smoke emission (up to 29.75%) through the use of biodiesel. However, a slight increase in NOx emission (up to 15.21%) was observed for biodiesel blends. BSFC increased by 7.41%, 19.35% and 26.47% for PMO25, PMO50 and PMO100 fuel blends respectively compared to diesel fuel. The BTE for biodiesel blends decreased when compared to diesel fuel. The combustion analysis showed a considerable increase in combustion pressure and heat release rate with shorter ignition delay and longer combustion duration. (C) 2018 Elsevier Ltd. All rights reserved.