The automobile sector which is growing day to day consumes the fossil fuel more than its growth. So there is a demand for exploring new sources of fuels for existing engines. This led to the growth in bio diesels which is an alternate fuel. An alternative fuel must be technically feasible, economically competitive, environmentally acceptable, and readily available. In this project esterified Nerium oil is used as an alternate fuel. A single cylinder stationary kirloskar engine is used to compare the performance and emission characteristics between pure diesel and Nerium blends. In this project selection of suitable nerium blend and selection of optimized injection timing for the blend is done. The Nerium oil blends are in percentage of 20%, 40%, 60%, 80%, and 100% of Nerium oil to 80%, 60%, 40%, 20% & 0% of diesel. From this project it is concluded that among all nerium and diesel blends 20% of nerium and 80% of diesel blend at 30° BTDC gives better performance nearing the diesel. When comparing the emission characteristics HC, CO is reduced when compared to diesel, however NOx emission is slightly increased when compared to diesel. At present neither Nerium oil nor bio-diesel of Nerium oil is available in the market. Hence for our work, well grown Nerium seeds are collected in Salem District around 500kgs of Nerium seeds are collected. After the processing of these seeds, oil was extracted. Approximately 10 liters of oil is obtained from the 20 kg of nerium seed. Then after proper filtration, esters of Nerium oil are prepared using the bio-diesel plant available in the department. Hence Nerium blend can be used in existing diesel engines with minimum modification in the engine. It also describes the usage of non-edible oil to a greater extent. © 2015 Elsevier B.V., All rights reserved.