This research paper deals with the synthesis of a heterogeneous catalyst (KBr/CaO) from commercial calcium oxide and potassium bromide by wet impregnation method. This solid catalyst was tested for transesterification of waste cooking oil (WCO). The synthesized catalyst was characterized by Fourier Transform Infrared spectrometry (FTIR), X-ray Diffraction (XRD) and Scanning Electron Microscopy (SEM) techniques. Transesterification reaction parameters were varied to obtain the maximum yield of biodiesel. Response Surface Methodology (RSM) using Central Composite Design (CCD) was employed to study the effect of the process variables like methanol to oil ratio, catalyst loading and reaction time. The optimum conditions obtained using regression models were found to be 12:1 methanol: oil ratio, 3 wt% catalyst loading and 1.8 h reaction time. The composition of FAME was determined using Gas Chromatography-Mass Spectrometry (GC-MS). The performance and emission characteristics for various blends of biodiesel (B10, B20, B50 and B100) were investigated in a four stroke direct injection diesel engine. The results indicated that the brake thermal efficiency, particulate matter, unburned hydrocarbons, carbon monoxide emissions reduced with increased concentration of biodiesel in the fuel blends, whereas the specific fuel consumption, NO emissions and exhaust gas temperature increased. (C) 2014 Elsevier Ltd. All rights reserved.