Recent concerns over the environment, increasing fuel prices and scarcity of its supply have promoted the interest in development of the alternative sources for petroleum fuels. At present, biodiesel is commercially produced from the refined edible vegetable oils such as sunflower oil, palm oil and soybean oil, etc. by alkaline-catalyzed esterification process. This process is not suitable for production of biodiesel from many unrefined non-edible vegetable oils because of their high acid value. Hence, a two-step esterification method is developed to produce biodiesel from high FFA vegetable oils. The biodiesel production method consists of acid-catalyzed pretreatment followed by an alkaline-catalyzed transesterification. The important properties of methyl esters of rubber seed oil are compared with other esters and diesel. Pure rubber seed oil, diesel and biodiesel are used as fuels in the compression ignition engine and the performance and emission characteristics of the engine are analyzed. The lower blends of biodiesel increase the brake thermal efficiency and reduce the fuel consumption. The exhaust gas emissions are reduced with increase in biodiesel concentration. The experimental results proved that the use of biodiesel (produced from unrefined rubber seed oil) in compression ignition engines is a viable alternative to diesel. (c) 2005 Elsevier Ltd. All rights reserved.