Transport vehicles greatly pollute the environment through emissions such as CO, CO2, NOx, SOx, unburnt or partially burnt HC and particulate emissions. Fossil fuels are the chief contributors to urban air pollution and major source of green house gases (GHGs) and considered to be the prime cause behind the global climate change. Biofuels are renewable, can supplement fossil fuels, reduce GHGs and mitigate their adverse effects on the climate resulting from global warming. This paper presents the results of performance and emission analyses carried out in an unmodified diesel engine fueled with Pongamia pinnata methyl ester (PPME) and its blends with diesel. Engine tests have been conducted to get the comparative measures of brake specific fuel consumption (BSFC), brake specific energy consumption (BSEC) and emissions such as CO, CO2, HC, NO, to evaluate the behaviour of PPME and diesel in varying proportions. The results reveal that blends of PPME with diesel up to 40% by volume (B40) provide better engine performance (BSFC and BSEC) and improved emission characteristics. (c) 2008 Elsevier Ltd. All rights reserved.