In this study, for the first time, fly ash was used as a thermal barrier coating material in a diesel engine. The study consists of three phases. In first phase, biodiesel was prepared in a laboratory scale setup by single step base catalyzed transesterification method. In the second phase, engine combustion chamber elements such as cylinder head, cylinder liner, valves and piston crown face were coated with fly ash, which is a thermal power plant waste, to a thickness of 200 mu m by using plasma spray coating method. In third phase, experiments were carried out on fly ash coated single cylinder diesel engine fueled by methyl ester of rice bran, pongamia oil and its blend (20% by volume) with diesel. The test run was repeated on uncoated engine under the same running conditions and the results were compared. An increase in engine power and decrease in specific fuel consumption, as well as significant improvements in exhaust gas emissions (except NOx) were observed for all test fuels used in the fly ash coated engine compared with that of the uncoated engine. (C) 2010 Elsevier Ltd. All rights reserved.